From Morningstar:

Nvidia’s stock value has been raised to $910 from $730 after the GTC conference showcased the latest AI GPU, Blackwell. Partnerships with various industries indicate continued growth potential for Nvidia in the future.

The increase in fair value is due to optimistic industrywide capex on AI GPUs, especially from hyperscalers and enterprises. Expectations are high for Nvidia to benefit from increased spending on AI GPUs in the coming years.

Nvidia’s stock has risen significantly in 2024, driven by higher cloud capex and enterprise spending on AI GPUs. The company’s ability to capture a larger piece of the data centre capex pie indicates strong potential for future growth.

Competitive pressures are acknowledged, but Nvidia is expected to maintain its lead in AI workloads. New tools like Nvidia Inference Microservices and a focus on AI inference could further solidify the company’s market position.

Nvidia’s latest hardware, Grace Blackwell Superchip, showcases impressive technology. With a significant increase in transistor count and connectivity options, Nvidia’s position in the GPU server market remains strong.

The new fair value estimate for Nvidia suggests a positive outlook, reflecting strong revenue and adjusted EPS projections for fiscal years 2025 and beyond. Revised estimates are above the mean FactSet consensus, indicating potential for growth in the coming years.



Read more at Morningstar: Morningstar Raises Nvidia Stock Fair Value to $910