Nvidia released its second-quarter 2026 earnings report, showing strong demand for AI products and revenue boost from Blackwell Ultra products. The company foresees $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade, with networking business reaching a $10 billion annual run rate.

Morningstar believes Nvidia is fairly valued at $190 per share, with exponential growth in the data center business and AI graphics processing units. The gaming business is expected to reach $31 billion in fiscal 2030, while the automotive business is projected to grow at a 20% compound annual rate.

Nvidia is in strong financial health, with $57 billion in cash and investments and $8.5 billion in long-term debt. The company’s wide economic moat is supported by intangible assets around its GPUs and high customer switching costs. The biggest risk is the pace of AI spending and geopolitical uncertainties.

Bulls believe Nvidia’s dominance in AI infrastructure and expansion into networking and software will drive growth. Bears are concerned about customer diversification away from Nvidia and uncertainties in AI revenue and use cases. Geopolitical factors could limit Nvidia’s opportunities in China.

Read more at Morningstar: After Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?