Nvidia’s Full-Stack Approach Poised for Industry-Wide Profit Share, Analysts Say


  • Analysts at Morningstar and BofA Securities express positive views on Nvidia’s long-term potential, praising its full-stack approach and strategic decisions over the years.
  • The comparison to Apple’s successful strategy indicates that Nvidia’s full-stack approach may lead to sustained profit share and industry standardization with strong developer support.
  • Despite Nvidia’s impressive stock performance, analysts believe that investors can still find opportunities for growth, focusing on sustainable long-term earnings power rather than short-term market milestones.

Morningstar’s analyst drew striking similarities between Nvidia Corp. (NVDA) and Apple Inc. (AAPL) and highlighted Nvidia’s full-stack approach as a key factor driving its potential for significant profit share within the industry. Ben Reitzes, an analyst at Melius Research, initiated coverage of Nvidia with a buy rating and set a price target of $625, emphasizing that Nvidia’s strategic decisions over the past two decades have positioned it for long-term benefits.

Reitzes compared Nvidia’s approach to Apple’s successful strategy, noting that a full-stack approach tends to yield substantial profit share over an extended period. This approach gains momentum through developer support and eventually becomes an industry standard. Despite Nvidia’s stock surging more than 200% this year, Reitzes asserted that there are still opportunities for investors to benefit from the company’s potential growth.

Furthermore, Reitzes advised investors not to solely focus on arbitrary market-cap milestones but instead concentrate on sustainable long-term earnings power. Drawing parallels with Apple’s journey, he highlighted that consensus views can remain accurate and rewarding when aligned with a successful business model.on Blizzard has developed and published some of the world’s most successful and popular video games, including Call of Duty, World of Warcraft, StarCraft, Diablo, Guitar Hero, and Skylanders. The company has a library of over 700 games, and over 400 million people play its games.

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