From Morningstar: 2024-09-06 05:23:00

Nvidia’s stock has dropped post earnings report, but Morningstar sees strong results and forecasts ahead. Data center revenue is expected to soar, with AI investments from cloud customers rising. Nvidia’s Blackwell products could generate $3 billion in Q4 revenue. Their economic moat is wide due to GPU leadership and software advantages. Financially robust, with $31.4 billion in cash and investments and minimal debt. Uncertain future due to competition in AI chip sector and potential diversification of semiconductor suppliers by leading tech companies. NVDA is favored for its GPUs’ parallel processing power and dominant position in AI training. However, competition and volatility in gaming GPU market pose risks.Wide moat thanks to GPU design and software advantages. Financially strong with a cushion of cash and investments. Uncertain future due to competition in AI chip sector and diversification of semiconductor suppliers by leading tech companies. Bulls see growth potential in data center business, AI technologies, and autonomous driving. Bears highlight competition in AI chip sector and volatility in gaming GPU market.



Read more at Morningstar: Nvidia Stock Is Down 15% Since Earnings. Is It a Buy?