Senator Elizabeth Warren is raising concerns about chipmaker Nvidia (NVDA) and its recent acquisition of SchedMD, a company behind widely used open-source software. In a letter sent to Defense Secretary Pete Hegseth and Energy Secretary Chris Wright, Warren said that the deal could pose risks, particularly because of how important SchedMD’s Slurm software is to government systems. She pointed out that Slurm is heavily used by both the Department of Defense and the Department of Energy in their supercomputers.
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New trading tool for NVDA bearsShe warned that bringing such a critical tool under Nvidia’s control could reduce competition and create potential national security concerns. As a result, Warren is asking for more details on how dependent government systems are on Nvidia’s technology. Specifically, she wants to know which Department of Energy and Department of Defense systems rely on Nvidia’s hardware or software, and has requested answers by May 5. The concern is that Slurm, which has traditionally been free and open-source, could effectively become tied to Nvidia’s ecosystem.
In her view, this could give Nvidia too much influence over a key part of the computing infrastructure that other companies also rely on. For context, Slurm powers more than half of the world’s top supercomputers and plays a key role in managing large computing systems. In response, Nvidia said it plans to keep Slurm open-source and available to everyone. The company noted that it has worked with SchedMD for more than a decade and intends to keep improving the software. Because of this, Nvidia argues that the acquisition will strengthen development rather than limit access.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 41 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average Nvidia price target of $273.57 per share implies 37% upside potential.
