Nvidia’s stock went up roughly 40% this year, lifted by the publications of strategic investment announcements that extended its influence beyond chip production. Through its partnership with Intel and doubling down on its agreement with OpenAI, Nvidia is not only fueling the AI sector only, it’s now designing it. These steps are quite progressive for the company’s strategy, as it is shifting from being a hardware supplier to a global AI infrastructure architect.
Intel’s Alliance to Rebuild
Nvidia shook the industry in September with its $5 billion investment in Intel, which is an act that was quite surprising for the tech community. Intel, who was once the semiconductor king, lost its footing due to blunders in mobile technology and slow AI adoption.
For Nvidia, the union seems to be a visible strategic benefit. As, Nvidia outsources the manufacturing of its chips to third parties, its collaboration with Intel provides exposure to American based manufacturing spots. This supports Nvidia to diversify its manufacturing, expand supply chains, and possibly loosen up from the geopolitical tensions.
CEO Jensen Huang said,
“Together, we will expand our ecosystems and lay the foundation for the next era of computing.”
The agreement essentially sets both firms up to contribute in building the infrastructure for what Huang refers to as the AI factories, which are the factories of the future.
AI Factories and OpenAI’s Growth
Huang’s idea of AI factories, which are the datacenters whose output is intelligence and not products, is being rapidly recognized. Also, the collaboration of OpenAI and Nvidia supports this narrative. The partnership came with a near $100 billion investment that ties heavily OpenAI’s expanding infrastructure to depend upon Nvidia’s chips.
These are the facilities where millions of GPUs will be made available for the training and deployment of the very complex AI models. A number of OpenAI global initiatives are already driving demand, which also includes a partnership with the U.K government in order to enhance AI computing capacity by twenty times over the next five years.
Nvidia’s involvement in these projects secures its place right into the heart of the AI revolution, thus becoming pivotal for private sector innovation and national AI tactics.
Global Market Challenges
Regardless of Nvidia’s success, it is also very much exposed to geopolitical headwinds, especially with regard to the limitations upon chip shipments to China. The Trump administration’s rules on the trade of AI chips has restricted Nvidia’s access to one of the biggest markets for AI computing hardware. Also adding to its misery is Beijing’s internal bans on foreign AI products that have changed into probable revenue streams.
Still, Nvidia’s financials are quite impressive, the company posted $46.7 billion in Q2 2025 revenue, which is 56% year over year growth, and estimated $54 billion in Q3 even with the slowdown in China. With a market share of about 94% in AI chips, Nvidia is still ruling a market that is still in hyper-growth mode.
Should Investors Invest Now?
With Nvidia stock reaching an all-time high of $191.05 on 2nd October, investors are considering if it is too late to hop on the rally. Although the firm’s price-to-earnings (P/E) ratio of approximately 54 may appear extreme, it perhaps represents the premium value that comes with the position of a market leader in a revolutionizing sector.
Also, Nvidia’s valuation still seems reasonable against competitors such as AMD, bearing in mind its bigger profitability, technological moat, and sector dominance. Regardless of this, the short-term traders might want to look out for a pullback following the stock’s rapid climb.
For long-term investors, Nvidia’s strategic collaborations with Intel and OpenAI, provide an attractive growth narrative that may shape the upcoming decade in computing.
Bottom Line
Nvidia’s new alliances are more than business growth, they represent its rise as the basis of AI development worldwide. By connecting chip design, data center manufacturing, and AI research ecosystems, Nvidia is constructing an empire that may reign over the next technological period. The fact that it can manage regulatory hurdles, along with innovating at a quick pace makes it one of the most strategic tech companies in the world.
For investors, Nvidia remains to be a much convincing bet on the future of artificial intelligence, one that could be worth waiting for, could reward far-sightedness, and can reward the endurance for the volatility that accompanies leadership in an industry.
However, is now really the time to invest? Nvidia shares are up about 40%, they carry a premium valuation, and have a P/E of around 54. That’s not for the faint of heart. But labeling it “overvalued” disregards the fact that Nvidia has become the basis of the AI economy. Its tech isn’t merely powering data centers, it’s constructing the foundation for an entirely different industrial revolution.
A short-term pullback may present a more favorable entry point, but long-term investors may be sorry that they waited so long. Nvidia is not simply selling chips, rather it is investing in tomorrow. And in a world where intelligence is the ultimate currency, that is a very worthy model to have faith in.
Discover more from Being Shivam
Subscribe to get the latest posts sent to your email.