From Morningstar:

Nvidia, a dominant tech company, is set to release its fourth-quarter earnings on February 21, after market close. Morningstar anticipates massive revenue growth for Nvidia due to demand for AI graphics processing units, but supply constraints might hinder earnings. Many moving pieces within the AI market, including US restrictions, will impact Nvidia’s future. Key Metrics shows the Economic Moat as Wide and Fair Value Estimate at $480.00. With an Uncertainty Rating of Very High and a low of two  star rating it might be overvalued compared with the long-term fair value estimate of $480. NVDA’s data centre business has seen exponential growth, expanding from $3B in fiscal 2020 to $15B in 2023.  Bulls say the firm is leading in parallel processing, AI and self-driving automobile markets, while bears say competition is catching up in AI chip development.

Nvidia bulls argue in favor of the company’s strong position in parallel processing, AI model training, and autonomous driving, setting it apart as a dominant vendor. Bears, however, cite concerns over increasing competition in-house AI chip development, the potential for a shift away from Nvidia’s AI tools, and uncertainty in their gaming GPU business.



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