Nvidia(US:NVDA)2024-03-20 16:00Investment Rating - The report assigns a "Buy" rating for the company, expecting total returns over the next 12 months to exceed the relevant industry [4]. Core Viewpoints - The report indicates that the positive sentiment towards artificial intelligence (AI) is likely to continue, with the company's valuation still at historical lows. It predicts strong growth in the data center business for 2024, with quarter-on-quarter increases expected [1]. - There are mixed opinions among clients regarding the demand for AI acceleration chips in 2024, with some expressing skepticism about sustainability, while others agree on strong demand but lack visibility for 2025. Optimistic forecasts suggest a potential 20% upside in Non-GAAP EPS for the year [2]. - The report anticipates that the data center business will continue to grow by over 20% year-on-year, driven by a recovery in chip demand in mainland China and advancements in product technology [8]. Summary by Sections Market Sentiment and Demand - The report highlights that the market's enthusiasm for AI will not diminish, with a focus on the entire hardware supply chain, not just the company itself. Recent market reactions indicate that the demand for AI-related hardware may be underestimated [9]. Product Development and Future Outlook - The company is expected to launch new products, such as H200 and B200, in the second and fourth quarters of this year, which may further enhance demand for computing power. The report notes that the demand for AI capabilities is becoming increasingly diverse and persistent [8]. Client Feedback and Perspectives - Client feedback is categorized into three main views regarding 2024 and 2025 chip demand, ranging from skepticism to strong agreement on growth, with a notable focus on the supply chain's readiness for new products [2].