Nvidia ( NVDA ) plans to invest up to $100 billion in OpenAI, a move that could generate billions in long-term revenue.

The partnership cements Nvidia ( NVDA ) as OpenAI's preferred compute and networking partner, reinforcing its dominance in the booming artificial intelligence market.

Bank of America Securities analyst Vivek Arya maintained a Buy on Nvidia ( NVDA ) with a price forecast of $235.

Also Read: Nvidia Jumps After $100B OpenAI Deal To Power Next-Gen AI Infrastructure

Arya highlighted the company's unmatched role in powering the AI buildout—the largest and fastest-growing technology investment in history.

The analyst argued that Nvidia's ( NVDA ) decision to commit up to $100 billion in OpenAI marks both a bold financial move and a strategic reinforcement of its moat.

On Monday, Nvidia ( NVDA ) announced a letter of intent with OpenAI to deploy at least 10 gigawatts of systems beginning in the second half of 2026 with the Vera Rubin platform.

Arya estimated this initiative could ultimately deliver $300 billion to $500 billion in revenue for Nvidia ( NVDA ), translating into a three to five times return on investment.

The analyst emphasized that the partnership also cements Nvidia ( NVDA ) as OpenAI's preferred strategic compute and networking partner, which may intensify competitive risks for peers such as Broadcom ( AVGO ) and Advanced Micro Devices ( AMD ) .

He acknowledged investor concerns over the optics of Nvidia ( NVDA ) financing a customer.

Arya expects Nvidia ( NVDA ) will classify the deal like its prior CoreWeave ( CRWV ) equity investment, with OpenAI treated as a commercial client rather than an outlier.

The analyst framed the potential revenue contribution in context: OpenAI could represent 15% to 25% of Nvidia's ( NVDA ) sales, similar to its largest existing hyperscale customers, while Nvidia ( NVDA ) could generate triple that revenue from 2026 to 2030 overall.

From Arya's perspective, the $100 billion commitment reflects a strategic deployment of free cash flow. With margins at 40% to 50% and an annual topline approaching $200 billion, Nvidia ( NVDA ) is positioned to generate hundreds of billions in free cash over the coming years, according to the analyst.

Arya stated that investing in external public assets has become less practical, given regulatory constraints and limited strategic alignment.

Instead, the analyst noted that Nvidia ( NVDA ) is channeling its cash into ecosystem investments that expand its addressable market, accelerate product timelines, and even deliver geopolitical benefits—similar to Intel's ( INTC ) recent ecosystem funding.

At roughly 30 times calendar 2026 earnings and less than 1 times Price/Earnings to Growth (PEG) ratio, Arya sees Nvidia ( NVDA ) as attractively valued compared to large-cap growth peers that typically trade at closer to 2 times PEG.

NVDA Price Action: NVIDIA ( NVDA ) shares were down 3.13% at $177.85 at the time of publication on Tuesday. The stock is approaching its 52-week high of $184.55, according to Benzinga Pro data.

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