Nvidia's $500 Billion AI Financing Push Targets Smaller Firms

Nvidia partnered with Apollo Global, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR, with Apollo Global, Apollo Global, and KKR to create financing platforms mobilizing over $500 billion for AI infrastructure, potentially backstopping up to $125 billion itself. The platforms aim to help smaller enterprises and AI labs afford Nvidia's expensive hardware, extending its addressable market. CEO Jensen Huang stated the financing will help customers build "AI factories" powering industries, while evidence suggests Nvidia chips have longer useful lives than initially assumed, potentially strengthening pricing power. Wall Street analysts estimate Nvidia's earnings will grow 44% annually over three years, making its 32 times earnings valuation appear cheap. The median 12-month price target is $300 per share, implying 44% upside from the current $208 price.