Nvidia is making a $3 billion move into the power backbone of AI infrastructure. According to a report from The Information, the chip giant has agreed to invest up to $3 billion in Lancium, the company behind the Stargate data center campus in Abilene, Texas. The initial $2 billion investment gives Nvidia a roughly 20% equity stake in the Blackstone-backed firm, with an additional $1 billion contingent on Lancium meeting power capacity and grid connection milestones. The deal values Lancium at around $10 billion in enterprise value, encompassing land, power connections, and debt.
Lancium is not a chipmaker or cloud provider—it develops land and power solutions, a critical bottleneck in today’s AI buildout. Its 1,000-acre Clean Campus serves as the first operational site under the Stargate initiative, a joint venture of SoftBank, OpenAI, and Oracle that was announced with up to $500 billion in commitments. Nvidia’s straight equity stake includes no credit guarantees or lease obligations, and it is expected to propel Lancium toward a potential IPO in 2027. If the additional investment kicks in, Nvidia’s ownership could rise to approximately 30%.
Separately, Bank of America (BofA) issued a strongly bullish note on Nvidia, calling it the best chip buy in the sector. The bank expects Nvidia to report Q2 revenue between $94 billion and $95 billion, above its own $91 billion guidance, and guide Q3 at $107–$108 billion versus the street’s $104 billion consensus. BofA highlighted that Nvidia’s forward price-to-earnings ratio of 16 times projected 2027 earnings is the lowest in a decade, justifying a Buy rating and a $350 price target. The bank also dismissed memory cost fears as “overblown,” forecasting gross margins to stabilize at 73–74%.
Nvidia’s ecosystem commitments include roughly $70 billion in equity to partners like OpenAI ($30 billion) and Anthropic (up to $10 billion), yet BofA argues the company’s projected $469 billion in free cash flow over 2026–2027 comfortably supports these investments. Nvidia’s last earnings report showed Q1 revenue of $81.61 billion (up 85.2% year-over-year) with EPS of $1.87, beating estimates. The stock was up 2.27% on the Lancium news and opened at $223.96 on Friday, near its 12-month high of $236.54.
