Nvidia's Future Cash Flow Could Surpass Microsoft's, Investor Says: 'Blew My Mind'
Portfolio Pulse from Benzinga Neuro
Nvidia's projected free cash flow for 2026 is expected to surpass Microsoft's, driven by high demand for its AI chips. This has led to significant stock performance and a planned 10-for-1 stock split. Analysts believe Nvidia's fundamentals are strong despite uncertainties in AI software revenue.
June 10, 2024 | 1:38 am
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NEUTRAL IMPACT
Nvidia's recent success has driven its value past Apple to become the world's second-most valuable company, highlighting the impact of AI chip demand.
Nvidia's rise in value past Apple is notable, but it does not directly impact Apple's stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEUTRAL IMPACT
The demand for Nvidia's AI chips is driven by major software companies, including Amazon. This highlights Amazon's role in the AI and cloud space.
Amazon's demand for Nvidia's AI chips underscores its involvement in AI and cloud services, but the direct impact on Amazon's stock price is limited.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 40
NEUTRAL IMPACT
Microsoft's free cash flow is projected to be surpassed by Nvidia's in 2026, driven by Nvidia's AI chip demand. However, Microsoft remains well-positioned in the cloud space.
While Nvidia's projected free cash flow surpasses Microsoft's, the latter remains strong in the cloud space, which mitigates the impact on its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 80
POSITIVE IMPACT
Google's cloud services are expected to benefit from the increasing outsourcing of AI and algorithmic business, driven by the demand for Nvidia's AI chips.
The increasing outsourcing of AI business to cloud service providers like Google, driven by Nvidia's AI chip demand, is likely to positively impact Google's stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Nvidia's projected free cash flow for 2026 is expected to surpass Microsoft's, driven by high demand for its AI chips. This has led to significant stock performance and a planned 10-for-1 stock split.
The news highlights Nvidia's strong projected financial performance and high demand for its AI chips, which are key drivers for the company's stock price. The planned stock split is also likely to attract more investors.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100