From Dow Jones & Company:

Nvidia is producing large amounts of cash, but an analyst believes they could earn an additional $100 billion by following models like Salesforce, Workday, and ServiceNow which generate recurring revenue. This strategy could increase free cash flow by $100 billion over the next two years, particularly if they can incorporate more recurring-revenue options. The current hardware-focused sales generate only about 2% of revenue, and without acquisitions, it is unlikely the figure will exceed $5 billion. Nvidia is considering partnerships or acquisitions to enhance its software portfolio, which could positively impact their trading multiple and stock value moving forward. Analyst Vivek Arya maintains a buy rating and a $700 price target on Nvidia stock.



Read more: If Nvidia looked more like Salesforce, it might unlock billions more in cash