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NVIDIA (NVDA) has just committed to supply exclusive AI compute infrastructure for OpenAI at SB Energy’s PORTS Pike campus in Ohio, tying the stock to one of the largest planned AI data center projects.

See our latest analysis for NVIDIA.

Over the past year, NVIDIA has combined heavy AI infrastructure announcements with strong stock performance, including a 1-year total shareholder return of 23.79% and a very large 5-year total shareholder return. The year to date share price return of 19.15% suggests momentum has been building recently despite shorter term swings.

If this OpenAI deal has you thinking about what else is powering AI infrastructure, it is a useful moment to scan a broader set of potential opportunities via our 56 AI infrastructure stocks

NVIDIA’s OpenAI and SB Energy commitments now anchor a much bigger AI infrastructure role in the stock at a time when the latest models suggest pricing is closer to fair than extreme. Is most of the upside already used, or not yet?

Most Popular Narrative: 19.6% Undervalued

According to the most followed NVIDIA narrative, a fair value of $280 sits above the last close at $225.01, which puts the OpenAI data center news into a wider valuation frame.

NVIDIA isn’t just riding the AI wave; it built the surfboard, owns the beach, and sells sunscreen. With a wide moat powered by proprietary hardware, exclusive software, and first-mover scale, NVIDIA is as close to a pure-play on the AI industrial revolution as it gets.

Read the complete narrative. Read the complete narrative.

Want to see what turns that story into a $280 fair value for NVIDIA? The narrative leans on compound earnings strength, high margins, and a premium future profit multiple. Curious which of those assumptions does most of the heavy lifting in the model?

Result: Fair Value of $280 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, even this NVIDIA narrative can be shaken if AI infrastructure demand cools faster than expected, or if export controls meaningfully restrict key data center markets.

Find out about the key risks to this NVIDIA narrative.

Next Steps

With mixed sentiment around NVIDIA’s AI infrastructure role, it makes sense to move quickly and check the underlying data yourself so you can decide where you stand on the 4 key rewards and 2 important warning signs.

Looking for more investment ideas beyond NVIDIA?

If NVIDIA’s AI story has sharpened your interest, do not stop here. Broader ideas can help balance your portfolio and keep you ahead of the next move.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NVDA.

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