Evercore Boosts Nvidia Price Target After OpenAI Partnership
Nvidia remains Evercore’s top stock pick after the brokerage reaffirmed its confidence in the chipmaker. Analysts raised their price target for Nvidia shares to $225 from $214, following a management callback on the company’s new partnership with OpenAI.
Nvidia and OpenAI Forge $100 Billion Alliance
The AI chip leader has agreed to invest up to $100 billion in OpenAI while supplying the startup with advanced data center chips. This marks one of the largest partnerships in the artificial intelligence race.
Evercore analysts emphasized that Nvidia is the preferred supplier for OpenAI. They believe the ChatGPT developer underestimated demand for AI infrastructure and turned to Nvidia as the only player with the scale to meet future needs.
10GW AI Infrastructure Buildout
The agreement covers at least 10 gigawatts of AI systems, including GPUs, racks, networking, and software. Evercore noted Nvidia’s addressable market per gigawatt could rise from the historical $30–40 billion range.
Analysts project the deal could generate $5.5 billion in additional revenue for Nvidia in the second half of 2026. Projects like Colossus, Prometheus, and Rainier were cited as benchmarks.
Upgraded Revenue Forecasts
Evercore increased its 2026 revenue and EPS forecasts by 2%, though it suggested these estimates might still be conservative. Analysts also highlighted Nvidia’s strength in its CUDA software stack and NVLink connectivity solution, which they expect to become industry standards.
Despite some concerns about a potential AI spending bubble, Evercore said Nvidia remains attractively valued. Shares trade at 32x forward earnings, below the nine-year median of 36x.
Strategic Importance of the Partnership
The partnership reflects how major tech players are converging in AI strategy. Nvidia gains a stronger foothold in OpenAI, already a major customer, while OpenAI secures the chips needed to defend its market leadership.
At the same time, OpenAI continues pursuing its own chip projects with Broadcom and TSMC, similar to efforts by Google and Amazon. This deal does not affect OpenAI’s collaboration with Microsoft or its in-house chip development.
