On Monday, Nvidia Corp.
Nvidia Wants AI Chips to Become a New Asset Class
Nvidia signed memorandums of understanding with Apollo Global Management
The initiative is designed to help hyperscalers, AI labs and enterprises finance data centers and Nvidia hardware through institutional credit, insurance capital and private investment rather than relying entirely on their own balance sheets.
Huang said the push marks a major shift in how investors should view AI computing.
"This is really the first time that technology chips have become an investable asset class," Huang told CNBC. "These are revenue-generating assets now. They're productive, they're long-lived, they're fungible, they're flexible."
Jensen Huang Sees GPUs As Infrastructure
Huang argued that Nvidia hardware can be financed much like traditional infrastructure because its chips are widely used and can be deployed across different customers and workloads.
"Fundamentally, what's different about this industry and this way of doing computing is that the computer is now part of the infrastructure, like electricity, like the internet, and so you have to think about it like it's infrastructure," Huang told the publication.
Nvidia Q2 Earnings Outlook Gets Bullish Upgrade
Nvidia is set to report its second-quarter results on Aug. 26.
In a note published Monday, Bank of America analyst Vivek Arya reiterated Nvidia as a "top pick" and set a $350 price target, implying 56.3% upside from the stock's $223.96 price at the time.
BofA expects Nvidia to post quarterly revenue of $94 billion to $95 billion, roughly $3 billion to $4 billion above the company's $91 billion guidance.
The bank also projects third-quarter guidance of $107 billion to $108 billion, topping the consensus estimate of about $104 billion.
Nvidia reported first-quarter revenue of $81.615 billion in May, an 85% year-over-year increase that surpassed Wall Street's $78.796 billion estimate.
Price Action: Nvidia shares closed at $217.55 on Monday, down 2.86%, while the stock edged up 0.20% to $217.99 in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge Rankings, Nvidia ranks in the 99th percentile for growth and holds positive short-, medium- and long-term price trend ratings.
