Nvidia Corporation (NASDAQ:NVDA) has become the poster child of the AI revolution, powering breakthroughs in data centers, AI, and high-performance computing. However, recent reports that Nvidia may not invest the originally planned $100 billion in OpenAI have raised questions. Does this signal trouble for NVDA stock? The Nvidia stock outlook suggests that while investors may worry about AI spending, fundamentals remain solid.
AI Investment: Scaling Back or Strategic Shift?
Earlier, Nvidia had announced plans to invest up to $100 billion in OpenAI, supplying both capital and high-performance GPUs to support AI development. Those plans have now stalled, with discussions shifting to a smaller equity investment in the tens of billions. CEO Jensen Huang has clarified that the initial $100 billion figure was non-binding and never finalized.
Huang has also voiced concerns about OpenAI’s business discipline and its ability to maintain a competitive edge against rivals like Alphabet Inc. (NASDAQ:GOOGL) and Anthropic. While some investors see this as a negative signal, the reality is more nuanced: Nvidia’s AI growth story remains intact, even if the partnership terms change.
About Nvidia Stock
Founded in 1993, Nvidia has evolved from a graphics card innovator into a global leader in accelerated computing. Its GPUs, initially designed for gaming, now power AI workloads across cloud and enterprise data centers. Headquartered in Santa Clara, California, Nvidia has built an ecosystem spanning autonomous driving, AI computing, healthcare, and high-performance visualization.
Despite slowing momentum after a historic rally, NVDA remains a heavyweight with a market capitalization of approximately $4.6 trillion. Shares are slightly down in 2026, trailing the S&P 500 Index ($SPX), which has gained about 2%. Nevertheless, Nvidia has outperformed over the past year, rising 54.9%, well above the broader market’s 15.8% gain.
Record Results and Strong Fundamentals
Nvidia’s fiscal 2026 third-quarter results, reported on Nov. 19, reinforced the company’s growth story. Total revenue hit $57 billion, up 62% year-over-year, surpassing analysts’ expectations of $55.5 billion. Data center revenue, the key driver, surged to $51.2 billion, a 66% increase from the prior year. Gaming revenue rose 30% to $4.3 billion, while professional visualization sales jumped 56% to $760 million.
Adjusted earnings per share reached $1.30, exceeding Wall Street’s $1.25 estimate. Shareholder returns remain strong, with $37 billion returned via buybacks and dividends in the first nine months of fiscal 2026. Nvidia still has $62.2 billion remaining under its buyback authorization.
CEO Jensen Huang highlighted “off-the-charts” demand for Nvidia’s new Blackwell chips, with cloud GPUs essentially sold out. The company expects Q4 revenue of roughly $65 billion, plus or minus 2%, maintaining healthy GAAP and non-GAAP margins around 75%.
Analyst Views on Nvidia Stock
Despite the uncertainty around AI funding, Wall Street remains bullish on Nvidia stock. Bank of America reaffirmed its “Buy” rating with a $275 price target, citing Nvidia’s dominant position in AI computing and networking. Out of 50 analysts covering the stock, 44 rate NVDA a “Strong Buy,” three give “Moderate Buy,” two a “Hold,” and only one rates it a “Strong Sell.”
Average price targets currently suggest a 41.65% upside from current levels, with the most bullish projection at $352—a potential 95.7% gain. Analysts note that while AI spending is growing rapidly, Nvidia’s leadership and broad product portfolio provide confidence that the company can manage near-term volatility.
Conclusion: Long-Term AI Leadership
The Nvidia stock outlook indicates that short-term concerns over AI investment adjustments do not overshadow the company’s long-term growth story. NVDA remains a key player in AI and high-performance computing, backed by strong revenue growth, record data center performance, and widespread analyst confidence.
Investors should expect some near-term volatility as AI spending scales, but Nvidia’s fundamentals and market dominance suggest the company is well-positioned to continue capitalizing on the AI revolution. For those seeking exposure to high-growth AI technology, NVDA stock remains a compelling option despite temporary partnership recalibrations.
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