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‘Everywhere, Everything, All At Once’: Nvidia Blows Away Estimates
Vive la révolution!
Nvidia sold some chips last quarter. Quite a few of them, actually.
Revenue w
I am interested to see if i) other AI infrastructure vendors are lifted, and ii) AI infrastructure buyers are lifted. Logically, investors can be positive on the former and not positive on the latter, without too much cognitive dissonance.
Excellent summary as usual of earnings report Mr. H. I think we will likely see a separation between the price makers: NVIDIA, Micron (and other HBM suppliers SK Hynix and Samsung listed on KOSPI), and the price takers, who have to pay the 75% gross margins (pound of flesh to Merchant of Santa Clara; apologies to Wm Shakespeare). The price takers are the hyperscalers/AI cloud service providers and neocloud service providers, with ever increasing debt financing. Google is in a unique and enviable position because its leading Gemini 3 frontier model runs on their proprietary TPUs. So even though Google buys some NVIDIA rack scale systems, it isn’t beholden to NVIDIA exclusively, unlike Oracle OCI, Tesla/Grok, Coreweave, and Nebius. AWS has its proprietary Trainium and Inferentia also, but its recent multibillion $$ deal with Open AI stipulates the latest NVIDIA rack scale systems. NVIDIA clearly has the strongest balance sheet (no net debt) and the most robust earnings and cashflow of all the mega cap stocks. Perhaps the Santa Claus rally will be pretty narrow.
I should add Taiwan Semi to the price makers listed above…
Sorry everyone, I jinxed the rally. I legitimately thought that Nvidia’s results would be the catalyst for the next leg up for the market.
Ha. I’m not sure I’d get bent out of shape watching every hour of price action. That’s the kind of thing that makes for bad decisions.