Morgan Stanley analyst Joseph Moore attributes the sharp recovery in Nvidia's gross margins for the unexpected EPS beat in the October quarter. Gaming earnings look materially higher going forward and the company's earnings recovery should continue, said Moore, but he thinks that while gaming drives earnings for the most part, HPC and Cloud/Data Center are the key driver of the multiple. The analyst, who still isn't seeing clarity on when there will be an inflection in data center, keeps an Equal Weight rating on Nvidia shares, but raised his price target on the stock to $180 from $170 as he raised his estimates, mostly due to gross margin and bringing down opex assumptions.

Friday's total option volume of 56.7 million contracts resulted in net open interest growth of 6.01 million calls and 5.28 million puts. NVIDIA (NVDA), Tesla (TSLA), Apple (AAPL) and Advanced Micro Devices (AMD) saw the greatest growth. Top five new positions opened include 50k Lyft (LYFT) May-24 20 calls, 44k Energy Transfer (ET) 4/26 weekly 16.5 calls, 43k Las Vegas Sands (LVS) Sep-24 41 calls, 23k Tesla (TSLA) 4/26 weekly 162.5 calls and 21k Papa John's (PZZA) Jun-24 57.5 puts.

SoftBank (SFTBY) is planning to spend Y150B, or $960M, by 2025 to boost the number crunching power at its computing facilities to develop world-class generative artificial intelligence, Nikkei Asia's staff writers report, citing sources. The company's computing power is likely to be among the highest in Japan once the investment is complete and graphics processing units will be bought from Nvidia (NVDA). Reference Link