JPMorgan Chase remains bullish on Nvidia, maintaining its "Overweight" rating with a target price of $320. Their key assessments are:
1. Strong AI computing power demand. Nvidia is confident in its roughly 70% year-over-year growth framework for fiscal year 2028. The main constraint currently comes from supply rather than demand, particularly advanced wafers and memory.
2. AI inference is increasingly becoming a significant part of Nvidia's data center business. OpenAI and Anthropic currently account for approximately 20% of Nvidia's business in terms of final computing power usage, and this could rise to approximately 25% by fiscal year 2028.
3. JPMorgan Chase believes that Nvidia's complete platform of "chip + rack system + software" is difficult to replicate, which is its biggest advantage. Furthermore, the next-generation platform continues to reduce the cost per token of computing power, helping to improve the profitability of model companies and support subsequent investment in computing power.
4. The main risks are the market share grab by alternative chips such as ASICs/XPUs, and the compression of profit margins due to rising memory prices and supply shortages. (The above views are from Goldman Sachs' September 2nd report.)
