💥Nvidia’s Mega Deal With OpenAI Could Reshape the AI Race

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Hi Fellow Investors,

Nvidia (NASDAQ: NVDA) has already shocked the market by becoming the world’s most valuable company.

Now it’s making headlines again with a $100 billion commitment to power OpenAI’s next generation of artificial intelligence systems.

This bold bet could fuel Nvidia’s dominance in GPUs while tightening its grip on the AI ecosystem.

And if Wall Street’s projections prove too conservative, Nvidia could be on a path to something unprecedented — a $10 trillion valuation.

Key Points:

• Nvidia is committing $100 billion in infrastructure to OpenAI, securing long-term AI leadership.

• The deal strengthens its moat against AMD and custom chipmakers, embedding Nvidia deeper into the AI economy.

• If growth projections hold, Nvidia could be positioned as the first-ever $10 trillion stock.

Why Nvidia’s OpenAI Bet Changes Everything

On Sept. 22, Nvidia signed a letter of intent to supply up to 10 gigawatts of computing infrastructure to OpenAI.

This isn’t just another deal — it’s a move that cements Nvidia at the core of generative AI’s future.

OpenAI’s ambitions for “superintelligence” require unprecedented levels of GPU power, and Nvidia is the only company capable of delivering at scale.

The partnership also acts like vertical integration, ensuring OpenAI’s most advanced models are tied to Nvidia’s hardware and software stack.

With hyperscalers and rivals racing to build custom silicon, this alliance highlights why Nvidia remains the gold standard in AI.

And beyond the revenue, it sends a powerful signal to the market: if OpenAI bets on Nvidia, others will follow.

The Road to a $10 Trillion Valuation

Nvidia is already on track to deliver $320 billion in annual revenues by 2027, according to Wall Street.

But with OpenAI projecting up to $125 billion in recurring revenue by 2029, Nvidia could capture a massive slice of that growth.

Even a 30% share of OpenAI’s future revenue would add $40 billion annually to Nvidia’s top line.

Analysts say this halo effect could drive Nvidia’s revenues toward $500 billion by 2030.

At its current three-year average price-to-sales ratio of 28, that would imply a valuation well above $10 trillion.

The exact timing may be uncertain, but the direction is clear: Nvidia is positioned to remain the face of the AI megatrend for years to come.

Strengths

• Nvidia’s $100 billion OpenAI deal locks in unmatched demand, making it the backbone of the most advanced AI systems on the planet.

• Its dominant 80%+ GPU market share provides enormous pricing power, giving it control over the pace of AI infrastructure spending.

• The company’s brand has become synonymous with artificial intelligence, cementing its role as the go-to platform for enterprises and governments alike.

Weaknesses

• Competition from AMD, hyperscalers, and custom chipmakers is intensifying, and pricing pressure could erode margins over time.

• The massive valuation already prices in years of growth, leaving little margin for error if AI adoption slows or capital spending pulls back.

• Heavy reliance on AI infrastructure creates concentration risk, making Nvidia vulnerable to regulatory or geopolitical shocks in the sector.

Potential

• Capturing just a fraction of OpenAI’s projected growth could add tens of billions in annual revenue, pushing Nvidia closer to record-breaking valuations.

• A $10 trillion market cap would cement Nvidia as the most valuable company in history, redefining what’s possible in the stock market.

• With AI still in its early innings, Nvidia’s growth runway may stretch far beyond 2030, offering long-term investors extraordinary upside.

Conclusion

Nvidia has already reshaped the tech world, but its $100 billion OpenAI bet could be its boldest move yet.

If the projections materialize, this deal could propel Nvidia to an unprecedented $10 trillion valuation, rewriting Wall Street’s playbook along the way.

For investors who believe in the unstoppable momentum of AI, Nvidia remains the crown jewel of the market.

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