Nvidia Faces AI Training Lawsuit; Analysts Project $120B Data Center Upside
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NVIDIA is facing a proposed U.S. class-action lawsuit alleging the unauthorized use of millions of public 3D artworks to train its TRELLIS-500K AI, seeking a nationwide class and damages. This new legal challenge introduces a material risk for the company. Simultaneously, analysts from Wells Fargo and Wolfe Research are projecting significant upside for NVIDIA's data center revenue, with Wells Fargo implying over $120 billion in upside versus current estimates and forecasting 2026-27 data center revenue 15-20% above current views, driven by strong demand for Blackwell and Rubin GPUs. Additionally, ARK Invest reduced its stake in NVIDIA. This mixed news presents both a new legal headwind and substantial potential revenue growth, creating conflicting signals for investors. Traders will be watching for updates on the lawsuit's progression and any further clarity on the magnitude of the projected AI revenue growth.
At the time of this announcement, NVDA was trading at $167.42 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.1T. The 52-week trading range was $86.62 to $212.19. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Wiseek News.