NVIDIA ( NVDA ): CAN PAID SOFTWARE MAKE ITS EARNINGS LESS DEPENDENT ON HARDWARE SALES ?

What happened: A report examines whether NVIDIA's (NASDAQ:NVDA) paid software offerings, AI Enterprise and Mission Control, can reduce its reliance on hardware sales. Key numbers: AI Enterprise lists at $4,500 per GPU annually. NVDA trades at 25x forward P/E versus 29x trailing. Q2 revenue growth was 106%, with a $108 billion Q3 revenue outlook. Why it matters: The report says subscription renewals must add profit after support costs before the installed base deserves a software valuation premium, and notes NVDA does not separately disclose recurring revenue or renewal rates.

A report examines whether NVIDIA's (NASDAQ:NVDA) paid software offerings, AI Enterprise and Mission Control, can reduce its reliance on hardware sales.

The report says subscription renewals must add profit after support costs before the installed base deserves a software valuation premium, and notes NVDA does not separately disclose recurring revenue or renewal rates.