Morgan Stanley: Nvidia $NVIDIA(NVDA.US) Road Show Feedback
> Accelerating Near-Term Revenue: There was almost no pushback regarding NVIDIA's short-term trajectory. Strong near-term business is universally expected, with revenue forecasted to accelerate even further beyond current high growth rates.> The Sovereign AI & Neo-Cloud Debate: Global space and power shortages are intensifying the geographic reshoring of AI data centers, driving countries to favor domestic deployments over US hyperscalers. Additionally, NVIDIA's newly proposed "neo-cloud" business model—where the company provides credit support to neo-clouds in exchange for revenue sharing on top of hardware sales—could unlock highly lucrative recurring revenue streams at 100% gross margins.> Prolonged Memory Shortages: NVIDIA expects memory shortages to persist for several years, forcing them to adapt their hardware to use less memory. Morgan Stanley views this as a positive catalyst for the broader memory cycle, trading short-term price amplitude for long-term cycle duration and visibility.
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