GO
| HSI1 | 24,040.34 | +68.05 | 98.10B |
| HSCEI1 | 8,051.67 | +21.13 | 24.86B |
| Back Zoom + Zoom - Block Traded | |
|
2026-10-05 12:26:20 CLSA published a research report stating that demand for NVIDIA Corporation (NVDA.US) has broader coverage than the market expects. Installations by Space Exploration Technologies Corp. (SPCX.US) are surging rapidly, with a target of reaching 10 gigawatts by end-2027. Sovereign AI already accounts for about 20% of NVIDIA Corporation's revenue. The broker expects Space Exploration Technologies Corp. (SPCX.US) to contribute more than 20% of NVIDIA Corporation's revenue by calendar year 2028, potentially replacing Microsoft Corporation (MSFT.US) as the largest customer. This challenges the market narrative that the company relies on the four major hyperscale cloud service providers and adds credibility to sustained growth. The broker noted that even if Space Exploration Technologies Corp. (SPCX.US) reaches its target one year later than originally planned, its contribution to NVIDIA Corporation's revenue is still estimated to surge from less than 2% in calendar year 2025 to more than 20% in calendar year 2028. Together with sovereign AI, both are not conventional components in discussions surrounding AI capital expenditure financing, helping ease funding concerns. The broker estimated that the AI capital expenditure financing gap, defined as the difference between required capital expenditure and operating cash flow of spenders, will peak in calendar years 2028 to 2029 at around USD500 billion to USD700 billion. Demand for debt financing and other capital market activities will be substantial, but not critical to survival. The broker estimated that Microsoft Corporation (MSFT.US) and Meta Platforms, Inc. (META.US) will remain the second- and third-largest customers respectively, followed by Google and Amazon.com, Inc. (AMZN.US), with Oracle Corporation (ORCL.US) next. Demand from Space Exploration Technologies Corp. (SPCX.US) is estimated to record a CAGR of 128% from calendar years 2026 to 2028. Together with sovereign AI CAGR of about 37% to 47%, this should drive NVIDIA Corporation's revenue growth to outpace demand growth from hyperscale cloud service providers, which would still be close to 30% even in the worst-case scenario. CLSA's earnings forecasts for NVIDIA Corporation (NVDA.US) for fiscal years 2027 to 2029 are 5% to 16% above market consensus. The broker believes the supply-constrained AI infrastructure buildout cycle will last longer than the market expects, with supply-demand balance unlikely before 2030. CLSA maintained its "High Conviction Outperform" rating and USD425 TP on NVIDIA Corporation (NVDA.US). (da/ad)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |