After the significant collaboration between NVIDIA and OpenAI, Wedbush asserts: The AI revolution has entered a new growth phase
Wedbush analysts pointed out that the collaboration between NVIDIA and OpenAI marks a new growth phase in the artificial intelligence revolution. NVIDIA plans to invest up to $100 billion, providing 4 to 5 million GPUs to build data centers. This initiative is beneficial for cloud computing giants like Microsoft, Alphabet, and Amazon. Wedbush also mentioned the global growth of AI investments, emphasizing the disruptive growth potential of tech stocks, predicting that the market capitalization of companies like Palantir will reach trillions of dollars in the next 2-3 years
According to the Zhitong Finance APP, Wedbush believes that the artificial intelligence (AI) revolution is entering a new growth phase, as the massive deal between NVIDIA (NVDA.US) and OpenAI indicates that the construction process of AI has not slowed down.
The numbers behind this deal are staggering. NVIDIA plans to invest up to $100 billion in OpenAI to establish and deploy data centers with a capacity of at least 10 gigawatts. NVIDIA will provide 4 to 5 million GPUs. Wedbush pointed out that this figure is equivalent to the total GPU shipments of NVIDIA in 2025 and is double its shipments in 2024.
Wedbush analysts, led by Daniel Ives, stated, "This announcement further solidifies the connection between NVIDIA and OpenAI, aiming to lead this cutting-edge AI revolution while providing OpenAI with a large amount of lower-cost financing channels by reducing the credit risk of loans to OpenAI."
The ongoing construction of data centers is good news for cloud computing giants like Microsoft (MSFT.US), Alphabet (GOOG.US, GOOGL.US), and Amazon (AMZN.US).
Wedbush also noted that large-scale AI investments have recently been announced around the world, such as in the UAE, Saudi Arabia, and the UK.
Ives added, "While bears may worry about valuations and are skeptical about the historic rally of tech stocks, we emphasize that if you only focus on valuations, such as looking at one-year price-to-earnings ratios... then you will miss every disruptive growth potential tech stock over the past 20 years." He also stated, "We believe that companies like Palantir (PLTR.US) will see their valuations grow further in the coming years, although there will be healthy pullbacks... but we believe that given Palantir's AI technology is disrupting the software industry, its market value will reach a trillion dollars in the next 2-3 years."
Wedbush has rated Palantir, NVIDIA, Amazon, Alphabet, and Microsoft as "outperform," with target prices of $200, $210, $250, $245, and $625, respectively
