Nvidia Earnings: Raising our Fair Value to $730 From $480 With No Signs of AI Slowing Down

Wide-moat Nvidia reported another quarter of outstanding revenue and earnings while providing investors with a forecast for the April quarter that was well ahead of our expectations. Leading cloud computing companies plan to boost their capital expenditures to satisfy demand for artificial intelligence training and inference, and it appears that virtually all this spending will fall into Nvidia’s pockets. More importantly, we anticipate healthy growth for Nvidia’s data center revenue beyond 2024, as Nvidia’s Cuda software should contribute to strong customer stickiness for existing AI models and workloads.