Bank of America says open-weight AI models boost Nvidia’s chip demand
Bank of America analyst Vivek Arya argues open-weight AI models—where weights are freely shared—do not cut costs for businesses but still require heavy computing power. The analyst notes these models now account for 71% of tokens on OpenRouter year-to-date, up from 27% in 2025, while cloud capital spending is projected to nearly double to about $1 trillion in 2026. This shift could redirect…
Key points
- Open-weight models now make up 71% of tokens on OpenRouter year-to-date, up from 27% in 2025
- Bank of America says these models drive cloud spending to nearly $1 trillion in 2026, benefiting Nvidia
- Nvidia’s stock rose 16.9% year-to-date but fell 3.2% in October amid AI spending concerns
Arya’s analysis positions Nvidia as a key beneficiary, as open-weight models demand robust hardware rather than reducing it. Nvidia’s stock has risen 16.9% year-to-date but has pulled back 3.2% in the past month amid broader scrutiny of AI infrastructure spending and financing risks.
The story so far
2 episodes →- Bank of America says open-weight AI models boost Nvidia’s chip demandthis story
Open-Weight AI Models Are Still Expensive. That Is a Win for Nvidia Stock.
finance.yahoo.com · 29 October 2026
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