Bank of America predicts massive sales opportunity for Nvidia (NVDA)

Nvidia (NVDA) announced a $100 billion investment in OpenAI to deploy 10+ gigawatts of systems for AI training. OpenAI’s user base exceeds 700 million, with a potential value of $500 billion. Bank of America analysts foresee a $300-$500 billion sales opportunity for Nvidia. Vera Rubin, Nvidia’s next-gen AI accelerator, outperforms Blackwell with 50 petaflops of FP4 inference.

Bank of America projects a 3-5x return on Nvidia’s investment, targeting $215 per share. OpenAI will partner with Nvidia for strategic compute and networking, strengthening Nvidia’s market lead. Analysts view the deal as a positive move in the AI arms race but note risks of circular revenue concerns and execution challenges. Key takeaways include a $50 billion revenue potential per gigawatt for AI data centers.

Nvidia’s investment in OpenAI aims to power the future of AI with 10 gigawatts of systems. Analysts see significant revenue potential in AI data centers. However, challenges in execution, regulatory scrutiny, and control issues may complicate the deal.