Nvidia finds itself at a strategic crossroads, receiving mixed signals from the market. On one hand, prominent analysts are championing the stock’s significant upside potential. Conversely, a landmark infrastructure initiative with OpenAI has unexpectedly stalled, creating a complex backdrop for the chipmaker’s aggressive AI market ambitions.
Analyst Bullishness Contrasts with Partnership Hurdle
Market confidence in Nvidia remains robust among research firms. Wolfe Research notably reinforced its positive stance on January 30, elevating its price target for Nvidia shares from $250 to $275. The firm maintained its “Outperform” rating. Based on the closing price of $191.13 at that time, this new target implies a potential upside of approximately 44 percent.
The analysts base their optimistic outlook on the anticipated scaling of Nvidia’s Blackwell rack systems. Models such as the GB200 NVL72 and GB300 NVL72 command prices between $3 million and $4.3 million per unit. Wolfe Research forecasts shipments of around 55,000 Blackwell racks for 2026, projecting this product line to be a major driver for both revenue and margin growth.
This vote of confidence arrives just as news broke regarding a major collaborative setback. According to consistent reports from January 31, 2026, Nvidia and OpenAI have been unable to finalize an agreement for a joint data center network project with a planned capacity of 10 gigawatts. The venture, which could have represented an investment of up to $100 billion, is now on hold.
Competition Concerns Halt Major Data Center Plan
Sources cited by publications including The Wall Street Journal and Bloomberg indicate that strategic apprehensions were the dealbreaker. Nvidia reportedly expressed concerns regarding OpenAI’s competitive positioning relative to other industry giants like Google and Anthropic. The chipmaker is said to have reservations about the AI startup’s strategic direction, which ultimately prevented the mega-project from moving forward.
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However, a separate, smaller avenue of collaboration may still be viable. Discussions concerning a potential Nvidia investment in OpenAI’s current funding round are understood to be ongoing and have not been entirely abandoned.
Strategic Pivot: CoreWeave Investment Scales Up
While the OpenAI partnership faces obstacles, Nvidia is actively securing other strategic alliances. In a move announced on January 30, the corporation invested $2 billion in cloud provider CoreWeave. The transaction involved acquiring roughly 22.9 million shares at $87.20 per share. This investment increases Nvidia’s stake in CoreWeave to about 11.5 percent.
This partnership aligns with Nvidia’s infrastructure goals. CoreWeave has outlined plans to develop over 5 gigawatts of data center capacity within the next five years—a project expected to rely heavily on Nvidia’s hardware.
Investors are now looking ahead to Nvidia’s upcoming earnings report for the fourth fiscal quarter of 2026, scheduled for February 25. This disclosure is anticipated to provide clearer insights into the initial market demand for the new Blackwell systems and whether strategic partnerships like the one with CoreWeave can effectively offset the impact of the stalled OpenAI initiative.
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