US Markets
Home›US Markets›Sectors›Wedbush flags near-term Nvidia risk tied to OpenAI dat…
Wedbush flags near-term Nvidia risk tied to OpenAI data center plans
The firm says Nvidia could provide a credit backstop of as much as $250 billion for OpenAI’s Ohio project, adding short-term financing uncertainty despite continued AI infrastructure demand.
AI infrastructure spending is rising faster than expected, and investors are increasingly focused on whether data center buildouts can be funded and delivered on time, according to Yahoo Finance. In that context, Wedbush is flagging near-term risks for Nvidia tied to reports that the company may back OpenAI’s planned data center project in Ohio with a credit backstop of as much as $250 billion.
Yahoo Finance also notes that Nvidia is central to the AI boom, supplying high-performance GPUs and complete computing systems used in data centers and cloud services. While Wedbush sees the bigger picture for AI infrastructure demand as positive over the longer term, the proposed financing support introduces a near-term risk for Nvidia, the outlet said.
The outlet highlights that Nvidia’s recent performance has remained strong even as investors debate rollout timelines. Over the past year, the stock is up 11.2% over 52 weeks and 6.9% year-to-date, and it trades at a forward price-to-earnings ratio of 21.62 times versus a sector average of 23.04 times.
Yahoo Finance points to the company’s growth and capital return updates, including an $80 billion increase to its share buyback program and a quarterly dividend increase from $0.01 to $0.25. It also cites record revenue of $81.6 billion, up 85% year-over-year, with data center revenue up 92% to $75.2 billion, plus GAAP gross margins of 74.9%.