Chipmaker Nvidia (NVDA) has promised its customers that its massive $100 billion partnership with OpenAI will not lead to special treatment for the AI firm. In a statement on Monday, the company said, “We will continue to make every customer a top priority, with or without any equity stake.” The reassurance came as some worried that such a huge deal might affect Nvidia’s ability to meet the needs of its other clients in a market that is already facing chip shortages.
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For context, the deal itself focuses on building new data centers that will be powered by Nvidia chips, with at least 10 gigawatts of capacity. These centers will be used to train and run advanced AI models and show just how quickly demand for computing power is growing. As a result, Nvidia’s chips have become the most valuable hardware in Silicon Valley and have driven both sales and shares to new highs.
Nevertheless, Nvidia still depends heavily on a few big customers, such as Microsoft (MSFT), Meta Platforms (META), Amazon (AMZN), and Alphabet (GOOGL). At the same time, they are also developing their own chips in order to reduce dependence on Nvidia. Therefore, if they believe OpenAI is being given priority, they could speed up those custom chip plans or turn to competitors like Advanced Micro Devices (AMD).
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 37 Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $212 per share implies 18.4% upside potential.
