NVIDIA Corporation (NASDAQ:NVDA) received a Buy rating and $210.00 price target from DA Davidson analyst Gil Luria on September 23. This follows Nvidia’s announcement of a $100B equity investment in OpenAI, with a letter of intent to deploy at least 10 GW of Nvidia systems for OpenAI’s future models.

While Nvidia’s investment in OpenAI is positive for ramping up, DA Davidson is concerned that Nvidia is becoming the “investor of last resort” to cover OpenAI’s heavy commitments. Nvidia previously bailed out CoreWeave IPO, and although the investment has tripled, traditional investors are preferred for funding the data center buildout.

NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions for data centers, self-driving cars, robotics, and cloud services. Despite its potential as an investment, other AI stocks may offer greater upside potential with less downside risk. For a undervalued AI stock benefiting from Trump-era tariffs and the onshoring trend, check out the best short-term AI stock.

Overall, Nvidia’s partnership with OpenAI and investment plans are significant developments, but investors should consider other AI stocks with potential.

Read more at Yahoo Finance: Nvidia (NVDA) Seen as Key AI Beneficiary Despite Risks Tied to OpenAI Funding