Nvidia’s Potential OpenAI Investment Sparks Stock Rally Amid AI Sector Optimism

Nvidia shares climbed 2% Monday, reversing a five-day decline as broader AI stocks rallied. The chipmaker's potential $100 billion investment in OpenAI has analysts forecasting significant upside, with CEO Jensen Huang calling the ChatGPT developer "the next multi-trillion-dollar" company. Melius Research projects OpenAI's platform could generate over $40 billion in annual ad revenue, creating substantial downstream demand for Nvidia's hardware.

Industry observers note the symbiotic relationship between Nvidia's AI infrastructure and OpenAI's Stargate project. "While AI is powered by Nvidia, OpenAI could indeed be the most important company in terms of the trillions in value its vision is supporting right now," wrote Melius analyst Ben Reitzes. The deal faces potential antitrust scrutiny, though market participants appear focused on the growth narrative.