NVIDIA faces scrutiny amid stalled $100 billion deal with OpenAI
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 27 2024
0mins
Should l Buy NVDA?
Source: Yahoo Finance
NVIDIA Corp's stock fell 3.01% as it hit a 20-day low, reflecting investor concerns about the company's future prospects.
The decline is largely attributed to the stalled negotiations of a $100 billion deal with OpenAI, which has raised alarms among investors. Since the announcement in September, there has been no substantial progress, leading to a significant drop in NVIDIA's market cap from a peak of $5 trillion to $4.4 trillion. This situation highlights the interdependence between NVIDIA and OpenAI, as both companies rely on each other for growth in the competitive AI sector.
The implications of this stalled deal could be significant for NVIDIA, as it may hinder its ability to capitalize on the booming AI market. Investors are closely watching how NVIDIA navigates this situation and whether it can secure new partnerships to mitigate the risks associated with its reliance on OpenAI.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 177.190
Low
200.00
Averages
264.97
High
352.00
Current: 177.190
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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