UBS has repeated a ‘buy’ rating on Nvidia Corp (NASDAQ:NVDA, ETR:NVD) boosted by the chipmaker’s new strategic partnership with OpenAI.
Nevertheless, the Swiss bank has left its $205 price target unchanged (for now) whilst noting that the agreement underlines Nvidia’s unrivalled positioning in AI infrastructure.
OpenAI has committed to deploying “at least” 10GW of Nvidia systems starting in late 2026, under the deal, which by UBS's maths equates to some $400 billion of revenue over time.
“This helps to flesh out more visibility to the substantial growth headroom” discussed at Nvidia’s last earnings call, the bank's analysts said.
UBS added that this should be viewed as incremental to the company’s previously flagged $3 to $4 trillion of total addressable market by 2030, bolstering confidence in Nvidia's pathway to $1 trillion of data centre revenue.