Nvidia's neocloud funding structure might unlock significant revenue stream: Morgan Stanley

Morgan Stanley believes Nvidia's $500 billion AI infrastructure financing deal, though met with mixed reactions, could unlock a significant new revenue stream for the company. The plan involves Nvidia providing credit backstops for "neoclouds" to secure financing, earning revenue shares from cloud services, and negotiating GPU usage prices. While details are still emerging, analysts suggest this could lead to substantial EBIT and EPS upside for Nvidia.