Sydney-based AI data center company Firmus raised $2B in funding from Coatue, Nvidia, and others at a $10.5B post-money valuation, up from $5.5B in April (Nichiket Sunil/Reuters)
Firmus said on Friday it had raised $2 billion in equity in its latest funding round to speed up the build-out of AI factories …
Nvidia's valuation has hit its lowest point in a decade despite surging demand for its artificial intelligence technology, according to a Bank of America analysis. The chipmaker is set to launch a multi-quarter upgrade cycle with shipments of its next-generation Vera Rubin chips, with analysts forecasting strong revenue growth. BofA raised Nvidia's stock rating to a Buy and maintained a $350 price target, calling it their top pick in the sector.
The brokerage highlighted Nvidia's compelling valuation, trading at a 16-times forward price-to-earnings multiple, the lowest in ten years.
The firm addressed two key concerns: rising component inflation and vendor-financing schemes. BofA argued that memory cost headwinds on upcoming Vera Rubin systems are limited, and Nvidia's direct partner equity commitments are only 15% of its projected cash flow. While rising DRAM prices have been a concern, BofA believes Nvidia is uniquely insulated by its pricing power, supplier relationships, and high selling prices for its rack-scale architectures.
Analysts expect Nvidia to maintain dominance in the AI accelerator market through 2030 with annual EPS reaching $25 or more.
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