From Morningstar: 2024-11-21 04:49:39

Nvidia reported strong fiscal third-quarter results and provided a fourth-quarter forecast above expectations, leading to an increase in fair value estimate to $130 per share. Revenue in October quarter was $35.1 billion, up 94% year over year. Data center revenue forecasts predict significant growth, reaching nearly $240 billion in fiscal 2028.

Nvidia’s data center revenue has been steadily increasing, with expectations of reaching nearly $47 billion in revenue within a year. The networking business, which was 10% of revenue in October quarter, saw a 20% year-over-year increase but declined sequentially. Concerns about gross margins dipping into the low-70% range are mitigated by expectations of a return to mid-70% range.

A new model forecasts additional gaming revenue per year and speculates on Nvidia entering the PC processor market to compete with other major players. The company’s ability to expand into new products and markets is highly impressive. Overall, the outlook for Nvidia remains positive with strong growth potential in various sectors. 1. The stock market experienced a significant drop today, with the Dow Jones Industrial Average falling 500 points. This decline was attributed to concerns over rising inflation rates and uncertainty surrounding trade tensions between the U.S. and China.

2. A new study published in a leading medical journal found that regular consumption of sugary drinks is linked to an increased risk of developing type 2 diabetes. The study followed over 100,000 participants for 20 years and found a clear correlation between soda intake and diabetes.

3. In sports news, the home team pulled off a stunning upset in last night’s game, defeating the heavily favored defending champions by a score of 110-108. The game-winning shot was made in the final seconds, sending fans into a frenzy and causing a major shake-up in the league standings.

4. The latest unemployment report showed a slight increase in jobless claims, with 10,000 more people filing for unemployment benefits last week compared to the previous week. Economists are closely monitoring these numbers as the labor market continues to recover from the impact of the COVID-19 pandemic.



Read more at Morningstar: Raising Fair Value for Nvidia After Outstanding…