Bank of America Extends $520M OpenAI Loan, Slashes Forecasts Except Uranium, Upholds Nvidia Buy
BAC•Bank of America extended a $520 million loan to OpenAI ahead of its IPO and slashed earnings forecasts for sectors except uranium, where prices spiked more than 10%. BofA analysts reiterated a Buy on Nvidia, forecasting it will secure 65%-70% of AI infrastructure spending and issuing a 12-month price target.
1. First $520 Million Loan to OpenAI
Bank of America has extended a $520 million revolving credit facility to OpenAI ahead of its planned IPO, marking the bank’s first direct loan to the AI startup and positioning it to capture advisory and underwriting fees.
2. Forecast Cuts and Uranium Exposure
BofA trimmed earnings forecasts across all major sectors except uranium, citing softer demand in industrials and energy; uranium prices meanwhile jumped over 10%, prompting analysts to highlight it as a rare upside in commodities.
3. Nvidia Buy Rating and AI Capex Projection
Analysts at Bank of America reaffirmed a Buy rating on Nvidia, projecting the chipmaker will command 65%–70% of long-term AI infrastructure spending and backing this view with a fresh 12-month price target.
