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Tech, Media & Telecom Roundup: Market Talk


Updated Jan. 5, 2024 12:40 pm ET

The latest Market Talks covering Technology, Media and Telecom. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

1146 ET – Nvidia’s generative AI dominance can potentially help generate about $100 billion of incremental free cash flow over the next two years, analysts at BofA Securities say in a research note. They expect Nvidia to deploy around $30 billion to $35 billion for buybacks, leaving ammunition for new growth initiatives. Nvidia’s relatively depressed trading multiple is partly due to uncertainty in CY25 growth prospects, and partly due to a very hardware dependent business unlike other large-cap software/internet peers that have recurring revenue profiles. “In our view [Nvidia]’s solid FCF generation creates optionality in addressing these concerns, and in helping to expand its trading multiple back to its historical median 35x-40x,” analysts say. Shares rise 2.6% to $492.59. (denny.jacob@wsj.com; @pennedbyden)

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