Morgan Stanley: NVIDIA is transforming into an AI infrastructure "financial partner," new revenue-sharing model could bring $500 billion annual revenue pool, FY28 EBIT expected to increase by 60%
Morgan Stanley analyst Joseph Moore likened NVIDIA's model of providing credit endorsements to emerging AI cloud service providers (neoclouds) in exchange for a share of cloud revenue to "financial innovation in the AI sector." The report pointed out that if the neocloud ecosystem develops to a scale of 25 gigawatts of hashrate, it could generate an estimated annual revenue pool of $500 billion. If NVIDIA were to capture a quarter of the profit share from this, it could potentially lead to an upside of up to 60% in its FY28 earnings before interest and taxes (EBIT). Morgan Stanley maintained an "Overweight" rating on NVIDIA with a price target of $288, listing it as its top pick in the semiconductor industry. NVIDIA recently also announced the establishment of a $50 billion investment fund to support long-term investments tied to revenue.
No AI analysis yet. Tap the "AI Analysis" button above to generate one now.
Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
24H Trending
-
1
Anthropic Files for IPO: Targets $4.6 Billion Revenue, $8.06 Billion Operating Loss in 2025, Aiming for Over $2 Trillion Valuation
-
2
XRP's Global Acceptance and Impact: Regulation, Applications, and Market Dynamics
-
3
Goldman Sachs' board has discussed plans to appoint John Waldron as the next CEO.
-
4
PureGym Taps High-Yield Bond Market for £1.4 Billion ($1.9 Billion) Refinancing to Cut Borrowing Costs
-
5
U.S. Representative Ro Khanna to Introduce AI Safety Bill: Prohibits Recursive Self-Improvement in AI, Establishes New Regulatory Body, Imposes Criminal Penalties for AI Models Committing "Crimes Against Humanity"
-
6
OpenAI abandons plan to release upcoming model GPT-6.1 Astra due to safety concerns
-
7
India State Firms Pull $688 Million of Bond Sales as Yields Rise
-
8
NVIDIA disclosed a surge in AI demand: total supply commitments soared by 135% to $279 billion, with Anthropic having signed for over $180 billion in hashrate.
-
9
Bitcoin vs. Ethereum: In-Depth Analysis of Core Differences, Technical Evolution, and Market Positioning
-
10
AI and Crypto Hashrate in 2026: DePIN, Idle GPU Rental, and New Paradigms for AI Model Training
Markets Today
Recommended Reading





