"Nvidia Corporation (NASDAQ:NVDA) is facing reported internal pushback on its ambitious $100 billion investment plan in OpenAI, according to a Wall Street Journal report that sent ripples through retail investor communities over the weekend. The news marks a potential shift in the AI infrastructure buildout narrative that has powered Nvidia's 53% stock gain over the past year. The reported concerns center on the scale and strategic alignment of the massive capital commitment."
"Reddit sentiment data shows the shift in real-time. The story generated over 2,000 upvotes and 200+ comments across r/wallstreetbets and r/stocks, with sentiment scores dropping from bullish readings of 72-78 on January 29 to bearish levels of 32-47 by February 1. One highly-engaged post titled "The $100 Billion Megadeal Between OpenAI and Nvidia Is on Ice" captured retail investor anxiety about execution risk."
"The timing is notable. Just weeks ago, CEO Jensen Huang dismissed concerns about custom chip competition, arguing Nvidia's holistic AI stack remains unmatched. He predicted TSMC capacity would need to double to meet AI demand, calling it "the largest infrastructure build-out of its kind in human history." The parallel to Oracle's recent struggles is instructive. Oracle's announcement of a $45-50 billion AI infrastructure funding plan triggered a 4% premarket drop as investors questioned debt loads and near-term profitability."
Nvidia faced internal pushback on a proposed $100 billion investment in OpenAI, prompting questions about scale, strategic alignment, return on investment, and partnership dynamics. The proposed amount equals roughly 53% of trailing twelve-month revenue and nearly 89% of EBITDA, while the $4.65 trillion market capitalization could technically support such deployment. Retail investor sentiment shifted sharply on Reddit, with the story generating over 2,000 upvotes and 200+ comments and sentiment scores falling from 72–78 to 32–47. CEO Jensen Huang emphasized an unmatched AI stack and predicted TSMC capacity would need to double, calling the build-out historic. Parallels to Oracle's large AI funding plan heightened investor skepticism about mega-scale capex and near-term profitability. Nvidia trades at 48x trailing earnings with analysts maintaining a $254 price target.
Read at 24/7 Wall St.
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