To The Moon

$NVIDIA(NVDA)$ 's stock soared to a new high after news broke of its planned $100 billion investment in OpenAI,

which intends to build and deploy a 10GW computing infrastructure.

This 10GW capacity is considered incremental, leading to a positive market reaction across the broader AI infrastructure sector, including key players like $CoreWeave, Inc.(CRWV)$ $APPLIED DIGITAL CORP(APLD)$, as well as storage and power companies.

A closer look at the collaboration details reveals:

Nvidia will assist OpenAI in deploying the 10GW data center, with the project slated to commence in the second half of 2026, starting with the 'Rubin' generation of GPUs. Following the signing of an initial $10 billion cash contract, Nvidia will also acquire an equity stake in OpenAI. OpenAI's current valuation is estimated at $500 billion, with its user base now reaching 700 million.

Nvidia's $100B OpenAI Play: Winning on Chips—and Equity

– $100 Billion Investment Secures $350 Billion in Revenue

In August, Jensen Huang informed investors during an earnings call that constructing a 1GW data center capacity typically costs between $50 billion and $60 billion, with approximately $35 billion allocated to $NVIDIA(NVDA)$ chips and systems. The industry largely uses this guidance for estimations. Simple extrapolation suggests that a 10GW build-out would entail a $500 billion expenditure, from which Nvidia stands to gain $350 billion in revenue. Based on Nvidia's current net profit margin, this could translate to roughly $175 billion in net profit.

An investment of $100 billion yielding an estimated $175 billion in net profit, coupled with an equity stake in OpenAI.

Overall AI Infrastructure Benefits

$Taiwan Semiconductor Manufacturing(TSM)$ , which monopolizes high-end chip foundry and packaging, rose 3%, continuing to hit new highs.

Both of Nvidia's supported "NEOclouds" saw gains of approximately 7%. Among them, $CoreWeave, Inc.(CRWV)$ broke above the upper trendline of its downward channel since June, while $NEBIUS(NBIS)$ continued its new high.

Data center operations and power resource stocks, represented by $APPLIED DIGITAL CORP(APLD)$ , saw even more significant gains. APLD surged 19%, $IREN Ltd(IREN)$ rose 8%, $Cipher Mining Inc.(CIFR)$ climbed 13%, and $Bitdeer Technologies Group(BTDR)$ $ increased 9%.
The recently strong storage sector extended its rally, with $Western Digital(WDC)$ up 5%, $Seagate Technology PLC(STX)$ up 3%, and $Micron Technology(MU)$ up 1%.