TLDR
- Nvidia plans to mobilize up to $500 billion in AI infrastructure investment through six institutional partners including Apollo, BlackRock, and Goldman Sachs.
- Morgan Stanley reiterated its Overweight rating and $288 price target, calling Nvidia its top semiconductor pick.
- A 35% revenue share above breakeven could add more than 10% upside to Nvidia’s fiscal 2029 EPS, per Morgan Stanley estimates.
- Nvidia reported Q1 revenue of $81.61 billion, up 85.2% year over year, beating estimates of $78.42 billion.
- The consensus analyst rating is “Buy” with an average price target of $305.94; NVDA opened at $225.16 on Friday.
Nvidia is pushing forward with a plan to mobilize up to $500 billion in potential investment for AI infrastructure. The chipmaker announced the initiative with six institutional partners who will create independent compute financing platforms to fund AI factories.
NVDA opened at $225.16 on Friday, with a 52-week range of $164.07 to $236.54. The company carries a market cap of $5.45 trillion.
Partners include Apollo, BlackRock, Brookfield, and Goldman Sachs. Each partner will assess projects on an individual basis. Nvidia may provide residual support of up to 25% of any given investment.
Morgan Stanley analysts said the third-party structure is a positive. It reduces concerns that Nvidia is financing its own demand, while opening new revenue-sharing opportunities for the company.
The analysts estimated that a 35% revenue share above breakeven could deliver more than 10% upside to Nvidia’s fiscal 2029 earnings per share. That figure depends on GPU pricing and deployment rates.
Morgan Stanley kept its Overweight rating and $288 price target. It named Nvidia its top semiconductor pick.
Analysts Broadly Bullish
Wall Street has been lining up behind the stock. JPMorgan raised its target from $265 to $280 with an Overweight rating. Bank of America bumped its target from $320 to $350 with a Buy. Benchmark set a $335 target, up from $250. Truist raised its target to $307 from $287.
The consensus sits at “Buy” with an average target of $305.94. Of analysts tracked by MarketBeat, 48 have a Buy rating, three have a Strong Buy, and two have a Hold.
UBS is also bullish ahead of earnings, forecasting that Nvidia could beat its fiscal Q2 revenue outlook of $91 billion by several billion dollars as demand for the GB300 ramps up.
Nvidia’s last earnings report showed Q1 revenue of $81.61 billion, up 85.2% year over year. EPS came in at $1.87, above the $1.76 consensus. The company also authorized an $80 billion share repurchase program and raised its quarterly dividend to $0.25 from $0.01.
Risks Still on the Table
Not everyone is convinced. Critics including Michael Burry have flagged the risk that AI financing becomes circular if customers rely heavily on borrowed capital to buy Nvidia’s own products.
Morgan Stanley acknowledged risks too, including added credit exposure and potentially higher leverage across the AI ecosystem. The $500 billion figure also represents potential investment, not committed funding.
Supply constraints, power bottlenecks, and the risk that Chinese developers shift toward Huawei hardware instead of US GPUs are also flagged as concerns.
Institutional ownership stands at 65.27% of NVDA stock. CoreCap Advisors increased its position by 1.6% in Q2, bringing its holdings to 243,104 shares valued at approximately $48.6 million.
Analysts predict Nvidia will post full-year EPS of $8.79 for the current fiscal year.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
