HOUSTON-Nvidia (NASDAQ:NVDA) and Emerald AI today announced that six energy companies have joined a partnership to develop AI data centers designed to connect faster to the grid and operate as flexible energy assets. The $4.2 trillion-billion semiconductor giant still has a major presence in the semiconductor and semiconductor equipment industries. Partners include AES, Constellation, Invenergy, NextEra Energy, Nscale Energy & Power, and Vistra.
According to a press release statement, the companies will use Nvidia's Vera Rubin DSX AI Factory reference design to build AI facilities, including DSX Flex software for connected grid services. AI plants can use matching energy generation and storage as transitional power during initial deployment, and then return the power to the grid. Emerald AI Conductor platform will coordinate computing flexibility, on-site power generation and batteries to provide power in response to grid demand while maintaining the quality of service of AI computing operations.
Renxun Huang, founder and CEO of Nvidia, said: "AI factory is the engine of the intelligent era. Like any great engine, every system must be designed as a whole architecture-energy, computing, networking and cooling. "
The company's financial performance reflects its leadership in AI, with revenue growth of 65% over the past twelve months. According to InvestingPro analysis, 31 analysts have raised their earnings expectations for the coming period, and the stock trades at a price-to-earnings ratio of 0.52, indicating an attractive valuation relative to the growth outlook.
The company said that by combining optimized infrastructure design with efficient use of existing assets, the power flexible AI facility can help release up to 100 GW of capacity in the U.S. power system. Due to the long traditional grid connection schedule, many large AI projects are shifting to supporting power generation and storage. The collaboration aims to solve this problem by enabling facilities to operate flexibly rather than being permanently isolated from the grid.
Over the past year, Nvidia and Emerald AI have demonstrated AI power flexibility in five commercial data centers around the world. DSX Flex is expected to be commercially deployed later this year at the NVIDIA AI Plant Research Center in Virginia. Energy partners commit to evaluate optimized power generation applications designed for AI facilities built on NVIDIA and Emerald AI architectures, including hybrid projects that use complementary power to accelerate deployment times.
InvestingPro data shows that Nvidia is currently undervalued based on its fair value analysis and ranks among the opportunities on the list of "most undervalued stocks. Investors looking for deeper insights can access comprehensive Pro Research reports covering Nvidia and more than 1400 U.S. stocks, turning complex Wall Street data into clear, actionable intelligence.
In other recent news, Super Micro Computer is facing legal challenges, and federal prosecutors in New York have accused co-founder Li Huawei and three others of conspiring to illegally transfer AI technology, especially NVIDIA GPU, to China. The indictment alleges that the scheme, involving $2.5 billion worth of AI servers, violated U.S. export control rules. Despite these developments, Bernstein SocGen Group reiterated its market performance rating on the company with a price target of $37.00.
At the same time, due to the optimistic forecasts for data center and GPU sales, multiple analysis agencies reiterated Nvidia's stock rating, bringing it into the spotlight. Wolfe Research maintained an "outperform" rating with a target price of $275.00, pointing out that by fiscal 2028, the stock's potential upside is 14-17% of consensus data center expectations. Argus continues to support Nvidia with a "buy" rating and a target price of $220.00, predicting GPU revenue of $1 trillion in 2027. In addition, Raymond James raised his price target on NVIDIA to $323, maintaining a "strong buy" rating and suggesting that the company's cumulative GPU sales forecast to 2027 may be conservative.
In terms of collaboration, Qnity Electronics announced a partnership with Nvidia to enhance AI-driven innovation in semiconductor and advanced electronic materials research.
This article was generated with the assistance of AI and reviewed by editors. For more information, please see our Terms and Conditions.