Cloud services will face a decline next year, which will affect NVIDIA and other companies ' revenues

Cloud services will face a decline next year, which will affect NVIDIA and other companies ' re

Citi analysts are convinced that the macroeconomic problems of next year will result in a drain of advertisers' funds from cloud services, which in turn will affect the revenues of companies such as NVIDIA and Marvell Technology, which supply components for data centres.

The forecasters expect that the cost of cloud service owners for infrastructure development next year will increase not by 15%, as in this year, but by only 10%. As a result, NVIDIA and Marvell clients will purchase the products of these two stamps in smaller quantities. The NVIDIA unit income per action in the following year could decrease by 10% under these conditions, and in the case of Marvell, it could be reduced by 1%. Citi specialists set a target for NVIDIA shares at $210 instead of the previous $248, and $71 instead of $74 for Marvell Technology.

On the other hand, analysts point out that in the long run, the demand for graphic processors and specialized accelerators will increase significantly, as they are now literally in its infancy. NVIDIA and Marvell products of subsequent generations are of the view that both companies will be able to generate revenues that exceed the current costs of cloud providers by two or three.