Nvidia (NVDA) Stock: Major UK Investment Deal with OpenAI Drives Analyst Upgrade

TLDR

• Nvidia and OpenAI are discussing a major investment deal to develop AI data centers in the UK, potentially worth billions of dollars
• The investment announcement is expected during President Trump’s state visit to the UK next week
• D.A. Davidson analyst upgraded Nvidia stock from Neutral to Buy with a $210 price target, expecting 18.5% gains
• The UK investment involves collaboration with cloud computing firm Nscale to boost AI infrastructure
• Countries worldwide are courting US AI companies to build sovereign AI capabilities and reduce foreign technology dependence

Nvidia is moving forward with plans for a major investment in UK AI infrastructure. The chip giant is working with OpenAI on a deal that could reshape Britain’s artificial intelligence landscape.

The two companies are discussing an investment worth billions of dollars. The deal focuses on developing data centers across the UK to support AI operations.

A person familiar with the discussions confirmed the talks to CNBC. The investment agreement has not been finalized yet but could be announced next week.

President Trump’s state visit to the UK next week provides the backdrop for the announcement. Nvidia CEO Jensen Huang will join Trump during the visit.

The investment involves cloud computing firm Nscale as a key partner. The three companies are still working through various processes before finalizing terms.

Stock Performance Gets Analyst Boost

D.A. Davidson analyst Gil Luria upgraded Nvidia stock this week. He moved his rating from Neutral to Buy with a new price target of $210.

The upgrade reflects expected gains of 18.5% over the next year. Luria sees continued growth in AI compute demand driving the stock higher.

The analyst believes this demand will sustain Nvidia’s growth trajectory. He acknowledges potential challenges including competition and geopolitical issues.

Wall Street maintains a Strong Buy consensus on Nvidia shares. The stock has benefited from the ongoing AI-driven bull market throughout 2025.

Global Race for AI Infrastructure

Countries around the world are competing to attract US AI companies. Governments want to build their own national AI infrastructure and reduce foreign dependence.

The concept of “sovereign AI” has become a priority for officials. This involves keeping critical AI data processing infrastructure within national borders.

Huang said his company would boost investment in the country. He described the UK as being in a “Goldilocks circumstance” for AI development.

The UK government has been actively courting major tech companies. Prime Minister Starmer has made AI development a key priority for his administration.

Nvidia’s stock closed Friday at $177.31, down 0.16% in after-hours trading. The company sits at the top of market cap rankings due to AI chip demand.

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