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Nvidia pushes AI expansion with new compute financing and credit support
After meetings with Nvidia leadership, BofA said the company is securing inputs beyond GPUs, including land and power for non-investment-grade customers like frontier labs.
Nvidia is positioning its AI business to cover more than chips, with a strategy focused on securing the full stack inputs, BofA analyst Vivek Arya said after meeting with the company’s senior management. In a note referenced by Yahoo Finance, Arya said Nvidia’s latest $105 billion OpenAI credit commitments underscore the intent to secure supply, land, power, and related infrastructure for disruptive customers such as frontier labs and neo-clouds.
The broader push also includes financial partnerships aimed at making Nvidia hardware and AI compute more accessible to institutional capital. Earlier in August, Nvidia partnered with Apollo Global Management, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to create independent compute financing platforms, targeting $500 billion in private capital for AI data centers and “AI factories.”
Separately, Nvidia CEO Jensen Huang announced credit support and residual value guarantees for SB Energy’s 8-gigawatt PORTS Technology Campus in Pike County, Ohio, a project designed to be leased by OpenAI and run exclusively on Nvidia AI infrastructure. Yahoo Finance reports that the company’s ecosystem investments are intended to accelerate the AI cycle, while potentially lowering earnings quality and weighing on the trading multiple.
Arya also pointed to strong GPU rental rates and compute scarcity, along with Nvidia’s free cash flow, as factors making the push attractive. He reiterated a Buy rating and a $350 price target on Nvidia stock, and argued Nvidia could increase investor cash returns by dedicating a greater share of free cash flow to buybacks, noting Nvidia’s planned 50% allocation sits below peers at 75% to 100%.