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Nvidia Beats, But Huang’s Revolution Faces Impossibly High Bar
"Hopper demand remains strong, and the anticipation for Blackwell is incredible," Jensen Huang beamed, rhapsodizing in the press release accompanying Nvidia's fiscal 2025 Q2 results, released to a veritable investor frenzy on Wednesday afternoon in the US.
There's no sense burying the lede. They beat. On everything. Revenue for Q2 was $30.04 billion, up 123% YoY. The gains are obviously decelerating, but somehow "slower" seems like a misnomer. Consensus was looking for $28.86 billion on the top
Ah, $50 billion added to McElligot’s projected vol-control buying.
All clear sailing, it would seem. So who is selling into this seemingly insatiable demand for US equities?
I’m not trying to guess what the bar is for NVDA, content with just watching the verdict as it comes in. On the one hand, +8% QOQ growth guided for 3Q is half of QOQ growth in 2Q, on the other hand, it is nicely above consensus. I’m more interested in seeing how much NVDA’s moves drag other names up or down. As of this writing, NVDA’s call has just ended, the stock is -8%, while I see some semi names down in apparent sympathy, the software names whose reports I’m watching are up, and the mega cloud names are down only a bit (a percent or so – although you’d think they would be up since NVDA just told us that AI capex is the “highest return investment”, with “tremendous ROI”, his customers save “untold” money on data processing “right away”). Perhaps NVDA’s control over the market’s mood and direction is easing a bit? That would reduce a risk factor, in my mind.