Bullish Shock: Major AI News — NVIDIA’s Biggest Bear Turns Bull

NVIDIA bullish flip is the headline investors and founders are parsing this week.

Key Points

Quick take — why this matters for AI compute and data‑center investment

OpenAI (Shānmǔ Ā’ěrtèmàn 山姆·阿尔特曼 / OpenAI) and NVIDIA (Yīngwěidá 英伟达) are reportedly preparing to pledge multi‑billion-dollar commitments to U.K. data‑center projects.

This move signals renewed confidence in sustained AI compute demand and could accelerate data‑center development, power upgrades, and chip deployment across Europe.

AI giants to pledge billions for U.K. data‑center projects — the facts

Sources say OpenAI and NVIDIA plan to visit the U.K. next week and pledge billions of dollars toward British data‑center projects.

The visit is expected to include top executives from both companies and follow high‑level calls across Europe for accelerated investment in generative AI infrastructure.

The U.S. tech firms will cooperate on the project with London‑headquartered Nscale Global Holdings (Nscale).

Nscale announced in May 2024 a three‑year commitment to invest 25亿美元 (¥18.25 billion RMB, $2.5 billion USD) into the U.K. data‑center sector.

Nscale has been pursuing sites including a plot in Luton, Essex that was reported to be able to host up to 45,000 of NVIDIA’s GB200 AI accelerators (GB200 superchips).

Earlier reports said Nscale was seeking to raise about 27亿美元 (¥19.71 billion RMB, $2.7 billion USD).

Why Europe is pushing data‑center and chip investment

European political and business leaders worry that slow infrastructure build‑out could leave the region behind in AI innovation and growth.

U.K. Prime Minister Keir Starmer (Kè’ěr Sītǎmó 斯塔默) announced plans earlier this year to accelerate AI development by backing data‑center and chip investments and proposing “AI growth zones” with streamlined planning and grid access for new facilities.

OpenAI is also expanding its European footprint: in July it announced a Norway‑based data‑center project known in Chinese coverage as “星际之门” (the “Stargate”).

The Stargate project is reportedly OpenAI’s first major European data‑center initiative and was designed and built in partnership with Nscale and Norway’s energy‑infrastructure group Aker.

NVIDIA’s “biggest bear” flips bullish — DA Davidson upgrades NVDA

DA Davidson raised NVIDIA’s rating from “Neutral” to “Buy”.

DA Davidson also bumped the 12‑month target price from $195 USD per share to $210 USD per share.

• Previous target: $195 USD per share (¥1,423.50 RMB, $195 USD)
• New target: $210 USD per share (¥1,533.00 RMB, $210 USD)

The bank said growing optimism about AI‑compute demand replaced prior concerns that hyperscaler spending could peak in 2026 and materially harm NVIDIA’s growth outlook.

DA Davidson’s research team, led by technology research head Gil Luria, wrote they are “increasingly optimistic about AI‑compute demand growth.”

The team highlighted an “overwhelming increase in compute demand” as the core reason for the change.

Key downside risks DA Davidson will monitor

The report lists several “counterflows” that could still weigh on NVIDIA’s outlook.

• Slower‑than‑expected capex growth from hyperscale/cloud providers;
• Margin and return‑on‑investment dynamics in AI workloads;
• Rising competition from ASICs and alternative GPUs;
• Constraints on growth caused by energy availability, data‑center build bottlenecks, or other infrastructure limits;
• Market expectations becoming overly optimistic.

• Strong signal for sustained demand in AI compute capacity.
• Supports companies across the data-center and AI hardware supply chain (chips, servers, power, cooling, construction).
• Highlights the need for coordinated planning for grid upgrades, permitting, and local energy sources for AI compute scale.

What this means for the market — short, tactical takeaways

Multi‑billion‑dollar commitments from OpenAI and NVIDIA to U.K. data centers would be a strong signal for continued demand in AI compute capacity.

That demand should support companies across the data‑center and AI hardware supply chain — from chips and servers to power, cooling, and construction firms — if the identified risks don’t materialize.

For investors and founders, this moment is a reminder to map exposure across three layers:

• Chip layer: accelerators and GPU suppliers (GB200‑class cards).
• Infrastructure layer: data‑center developers, power & grid companies, and cooling systems.
• Cloud & software layer: hyperscalers, model operators, and AI service providers.

For markets and policymakers, the story highlights the value of coordinated planning for grid upgrades, permitting, and local energy sources when AI compute scale is at stake.

Investor checklist — what to watch next

Watch for confirmed announcements from OpenAI, NVIDIA, and Nscale about pledge size and timelines.

Monitor U.K. planning decisions and any rollouts of the proposed “AI growth zones.”

Track DA Davidson’s coverage updates, along with other brokerages, for shifts in sentiment and target prices.

Keep an eye on hyperscalers’ capex commentary for signs of either acceleration or moderation in spending plans.

Context & narrative — why the upgrade matters beyond a price target

An upgrade from a firm that was previously bearish is more than a number change.

It signals a sentiment shift inside sell‑side research: worries about a 2026 spending peak no longer dominate the thesis, and the narrative has tilted toward structural demand growth for AI compute.

That narrative matters because it influences allocation decisions across pension funds, sovereign wealth funds, and long‑short funds — and in turn can move capital into infrastructure projects and chip makers.

Bottom line

The combination of potential multi‑billion‑dollar commitments from OpenAI and NVIDIA to U.K. data centers, European pressure to speed infrastructure, and a major brokerage reversing course on NVIDIA points to lasting appetite for AI compute capacity.

This dynamic is a meaningful signal for investors, founders, and operators building the next wave of AI platforms and data centers.

NVIDIA bullish flip

References

• 利好来袭！人工智能突传重磅！英伟达“最大空头”投降 – 券商中国
• OpenAI, NVIDIA to pledge funding for U.K. data‑centers (related coverage) – Bloomberg
• DA Davidson research and press (DA Davidson) – DA Davidson