Barclays lifts Nvidia target to $240, sees 35.6% upside

Barclays on Thursday raised its target for Nvidia stock to $240, up from $200. That means a possible upside of 35.6%, based on where the stock trades now, and it cited a massive surge in artificial intelligence spending that could push the chipmaker’s numbers way higher in the next five ￰0￱ prediction came in a note from Barclays analyst Tom O’Malley, who said the flood of AI partnerships and cash is landing directly in Nvidia’s income statement over the long ￰1￱ to Barclays, this makes Nvidia the most attractive stock in the entire AI ￰2￱ the past few weeks, Nvidia has sealed a string of deals that position it at the center of AI ￰3￱ biggest one is a strategic agreement to invest up to $100 billion in OpenAI, the company behind ￰4￱ money will go into compute resources and chip ￰5￱ the same time, Nvidia also signed a separate agreement with Alibaba to build out physical infrastructure for AI data training and ￰6￱ earlier this month, the company committed $5 billion to Intel, which will now have its CPUs integrated into Nvidia’s AI ￰7￱ signs billion-dollar deals while others raise cash In O’Malley’s view, the impact of these moves is already visible in the broader AI ￰8￱ said , “With the wave of announcements that have come over the last 6-9mo, we now estimate over $2T of planned spend at ~40GW of power in total.” That figure includes government, corporate, and private efforts to build massive AI systems that need tons of compute ￰9￱ of that demand flows straight into Nvidia’s GPU business, which fuels everything from large language models to recommendation ￰10￱ recent deals are happening alongside fresh funding efforts ￰11￱ Thursday, Nscale, a British AI infrastructure firm based in London, announced it had raised $1.1 billion in Series B ￰12￱ investment firm Aker led the ￰13￱ backers include Nvidia, Nokia, and ￰14￱ money will be used to build AI data centers across Europe, especially in the U.

K., where Microsoft, OpenAI, and Nvidia recently launched multi-billion-dollar infrastructure projects through ￰15￱ isn’t alone in backing ￰16￱ the 66 firms that cover the stock, 60 have it rated as a buy or strong buy, based on LSEG ￰17￱ even though Nvidia’s shares dipped by 1% on Thursday morning, they’re still up about 31% since the start of the ￰18￱ far, Nvidia’s performance has been driven by massive chip sales to OpenAI, Microsoft, Amazon, Google, and Meta; all hungry for the hardware that powers generative ￰19￱ OpenAI-Nvidia cash loop But not everyone is ￰20￱ analysts are warning about how the cash is moving in circles, with no clear value being ￰21￱ Zakalik, analyst at Neuberger Berman, pointed out that the latest Nvidia–OpenAI deal is just another example of money cycling back into the same players.

“The Nvidia deal is the latest example of OpenAI raising money that it pours right back into the company providing the capital,” Jamie ￰22￱ concern is that companies like Microsoft invest in OpenAI , which then spends that cash on chips from Nvidia, giving everyone a revenue boost, without making anything ￰23￱ added, “It’s goosing up everyone’s earnings and everyone’s numbers, but it’s not actually creating anything.” That statement echoes what many skeptics have been whispering across trading desks: the numbers are growing, but the output isn’t. The smartest crypto minds already read our ￰24￱ in? Join them .