In an era defined by artificial intelligence (AI) and accelerated computing, Nvidia (NVDA) stands out not just as a leading semiconductor company but as the central engine of the global AI infrastructure boom. With demand for AI chips surging across data centers, cloud platforms, autonomous systems, and research institutions, Nvidia’s technology has become the indispensable backbone of next-generation computing.
Further reaffirming Nvidia’s core position in the AI landscape, D.A. Davidson analysts believe OpenAI’s planned fundraising of up to $100 billion could drive a re-rating of AI-linked stocks, with Nvidia positioned as a significant beneficiary.
OpenAI is reportedly planning a massive fundraising round of up to $100 billion, aiming to secure capital that could power its ambitious expansion across AI research, computing infrastructure, and global deployment of next-generation models. If completed, this raise could value the company at around $830 billion, positioning it among the most valuable private tech firms ever and reflecting extraordinary investor confidence in its long-term role in the AI landscape.
Nvidia’s dominant share of the AI GPU market, expanding ecosystem of partnerships, and the growth trajectory of AI data centers present a compelling argument that NVDA stock may be a solid long-term buy.
Nvidia is a global leader in accelerated computing and AI, renowned for pioneering the GPU that revolutionized gaming, data centers, and AI-driven computing. Headquartered in Santa Clara, California, Nvidia’s technology now powers everything from high-performance gaming and cloud computing to autonomous vehicles and generative AI applications. With a market capitalization of roughly $4.6 trillion, Nvidia stands among the world’s most valuable companies, driven by its dominance in AI infrastructure and continued innovation in next-generation chip design.
Over the past year, NVDA stock has delivered strong positive returns, significantly outpacing broad market benchmarks as investor enthusiasm around generative AI and accelerated computing continued to drive demand for its GPUs and datacenter solutions. Over the past 52 weeks, NVDA has generated total returns of 42%, supported by explosive growth in datacenter revenue, ongoing leadership in AI hardware, and strategic product launches that also helped propel the stock to an all-time high of $212.19 in October 2025.
On a year-to-date (YTD) basis, however, Nvidia’s share price has shown muted performance with just 1.5% gains. That performance has come amid concerns about a rotation away from technology stocks, rising competition from custom AI chips, and higher memory costs. Still, sentiments seem to be improving lately.
Nvidia shares climbed 2.5% on Feb. 9 to close the session at $190.04. That extended momentum after an 8% surge on Feb. 6, as investors reacted positively to aggressive AI-related spending forecasts by major tech companies, a major tailwind for Nvidia.
Nvidia’s dominant position has led it to trade at 27 times forward earnings, a pronounced premium valuation compared to industry peers.
Nvidia delivered a particularly strong showing in its third quarter of fiscal 2026 results, underscoring just how deep the demand for AI infrastructure has become. On Nov. 19, the company reported revenue of a record $57 billion for the quarter ended Oct. 26, representing a 62% year-over-year (YOY) jump and a 22% increase from the prior quarter.
The company’s datacenter business was the main engine, with datacenter revenue hitting $51.2 billion, up 66% YOY, reflecting surging demand for AI-ready GPUs and cloud computing infrastructure. The firm’s profitability remained strong as well. Non-GAAP gross margins held around 73.6% and non-GAAP EPS came in at $1.30, a 60% YOY rise and comfortably ahead of Wall Street estimates.
Management also offered bullish forward guidance, expecting around $65 billion (plus or minus 2%) in revenue for Q4 fiscal 2026. That projection suggests confidence in continued strong demand for its AI chips and datacenter gear despite macroeconomic headwinds or geopolitical uncertainty. Nvidia is scheduled to release its Q4 and full-year fiscal 2026 earnings on Feb. 25, after the market close.
Analysts tracking Nvidia project EPS to climb 51% YOY to $4.43 in fiscal 2026, then grow another 59% to $7.03 in fiscal 2027.
Recently, Goldman Sachs reiterated a “Buy” rating on Nvidia with a $250 price target. The firm expects a beat-and-raise quarter when Nvidia reports earnings on Feb. 25, supported by strong supply-demand trends. Goldman also points to potential catalysts in early 2026, including higher hyperscaler capex forecasts, rising demand from customers like OpenAI and Anthropic, and strong results from AI models running on Nvidia’s Blackwell architecture, reinforcing its technology leadership.
Last month, Morgan Stanley also reiterated an “Overweight” rating on Nvidia with a $250 price target, pointing to increasingly strong AI market checks.
Wall Street’s bullishness is evident in NVDA stock having a consensus “Strong Buy” rating. Of the 50 analysts covering the stock, 44 advise a “Strong Buy,” three suggest a “Moderate Buy,” two analysts are on the sidelines with a “Hold” rating, and one offers a “Strong Sell” rating.
The average analyst price target for NVDA is $255.34, indicating potential upside of 34% from current levels. The Street-high target price of $352 suggests that NVDA stock could rally as much as 84% from here.
On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com