Nvidia (NVDA) Chief Financial Officer Colette Kress told the press on Tuesday that it is still finalizing its $100B deal with OpenAI. The semiconductor and GPU giant announced the proposed investment a few months ago, sending its stock higher as well as OpenAI’s valuation higher.
Nvidia, the world’s most valuable company by market cap, said in September it intends to invest in OpenAI, under an agreement that would involve deploying at least 10 gigawatts of Nvidia systems for the startup, enough capacity to power more than 8 million U.S. homes. However, details haven’t been finalized yet, putting the deal on hold. “We still haven’t completed a definitive agreement, but we’re working with them,” Kress said, addressing questions about the framework of Nvidia’s agreement with OpenAI.
Over the past year, Nvidia has struck a series of deals with AI startups and invested in firms that are also major AI customers. The investments have split Wall Street investors due to potential concerns about an AI bubble and so‑called circular deals. However, it’s done well by Nvidia, with NVDA shares up over 30% YTD. NVIDIA’s stock is up a fraction of a percent on Tuesday following the CFO’s OpenAI investment update.
Despite this month’s dip, NVDA still has a bullish forecast from several top Wall Street players. Last week, Bernstein wrote in a note to clients projecting that Nvidia stock could reach a high of $272 next. The analysis follows Nvidia’s memo addressing several bearish viewpoints that have circulated recently in press reports.
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Bernstein went on to address concerns about working capital, revenue circularity, accounts receivable, and depreciation lifetime that were raised by bears. The analysts noted that the mentioned points are “broadly valid and useful,” and confirmed that it received “many requests from investor clients” on NDVA’s prospects.
NVDA is trading near the top of its 52-week range and above its 200-day simple moving average. Wall Street is looking at a $200 target by the end of this year, to fuel a bullish stance on NVDA to start 2026.