Nvidia Pledges $2 Billion to Optics Partners, Price Target Raised to $360
Nvidia is committing $2bn to strategic agreements with Lumentum and Coherent to scale advanced optics production for AI infrastructure, securing future capacity rights and boosting US manufacturing. Tigress Financial raised its price target on Nvidia shares from $350 to $360 while maintaining a strong-buy rating.
1. Nvidia Invests in Optics Suppliers
Nvidia has agreed to invest a total of $2 billion in Lumentum and Coherent, funding advanced optics technologies crucial to AI data centers. Each deal includes significant purchase commitments and secured rights to future production capacity, supporting R&D and bolstering US-based manufacturing facilities.
2. Analyst Upgrade Lifts Price Target
Tigress Financial elevated its Nvidia price target from $350 to $360, citing Nvidia’s leading role in AI infrastructure and robust growth in revenue and profitability. The firm maintained its strong-buy rating, reflecting confidence in Nvidia’s market position and future earnings potential.