Nvidia AI Models Triple Xanadu Valuation, Oppenheimer Sets $265 Target
Nvidia’s open-source AI models for quantum research drove Xanadu Quantum’s valuation to triple, lifting the founder’s stake to about $1.5 billion. Oppenheimer named Nvidia top pick with a $265 price target, citing Blackwell Ultra racks’ two-generation lead and a 17x 2027 earnings multiple below sector average.
1. Open-Source AI Models Boost Quantum Valuations
Nvidia released a set of open-source AI models to support quantum computing research, triggering a sharp re-rating in quantum startups such as Xanadu Quantum. Xanadu’s valuation has more than tripled in days, boosting founder Christian Weedbrook’s stake to an estimated $1.5 billion.
2. Oppenheimer Names Nvidia Top Pick with $265 Target
Oppenheimer named Nvidia its top pick, assigning a $265 price target based on Blackwell Ultra racks staying two product cycles ahead. Analysts highlighted Nvidia’s performance-per-watt edge and integrated software-networking ecosystem, and noted its 17x 2027 earnings multiple versus the sector’s 20x average.
3. Growing AI Chip Competition
While Nvidia dominates the AI chip market, investors have poured $8.3 billion into startups targeting the inference stage of AI. Nvidia is responding with more than $18 billion in R&D investments and bets on photonics, but newer designs aim to undercut GPU energy use and operating costs.