Nvidia (NVDA) Starts New Computing Era With Major Earnings Beat
was just three months ago in video shocked with a $4 billion beats to revenue expectations. Now we have arrived at that quarter and they cleared the hurdle. Easily and video just reported second quarter revenue of 13.5 billion. That is 2.5 ahead of the 11 billion estimate that analysts had settled on after they gave that guidance last quarter. George Tillis, Our senior marks correspondent here with me to take a look at the numbers. Obviously that is a very nice beat George in videos now very much formally in the ranks of companies that can deliver multi billion
dollar beats, and that still is a fairly limited group. So obviously they lived up to the expectation they set. What comes next. We’ll ask you a question. I think obviously, guidance is going to be significantly important for a new video going forward, at least from the standpoint of price, which again you know it’s hitting or close to hitting some of the 52 week highs prior to this announcement, 16 million numbers are incredible. What Sorry. Didn’t get that next quarter. They’re saying $16 Billion Street was expecting 12.5 so I guess they did it again. So that’s
another What 2025 or 30% improvement over the estimates. That’s again another remarkable guidance number. I mean last quarter, they got it higher by 60% the estimates for this
and, of course I e. P s estimates that the company provided last quarter, especially sequentially, but also year over year and that was to give in mind that these numbers on a comparative basis coming off the back of the end of last year end of 2022, where we actually saw, you know there was a decline across the board and data center. Revenues for no video, But that’s been a huge turnaround. Plus the guidance speed is pretty significant for this name, okay? So all right. Mm Earnings wise is that secondary to revenue now? Right now, the
priority is the pull in all the revenue. Get the fresh chips out, make the tweaks and adjustments they need to a I services and products and then Do whatever they want with all that cash later on, either reinvest it or figure out how to make sure holders happy just to iterate. We’re focused here on the revenue not so much. The bottom line is beating too. But that seems a little bit secondary t this juncture of their roll out for these new products. I think so. I think at least this quarter and I think it’s significant
because of the sequential guidance they provide the last quarter. Like I said over 60% so I think top line sales just my view of it is paramount here for the video, but you also have to consider their generating earnings that are four times sales, and that’s remarkable to say the least for any company. Not what along this company, which is essentially You know, the architect of, you know revolutionary technologies in terms of semiconductor systems are on artificial intelligence. So really nice report and you can see it’s just climbing as it’s being absorbed now by institutions
who are bidding it up and changing their models based upon the guidance companies providing, okay Looking at a few of the comments out there statement has some pretty interesting wording. They say that the new computing era has begun. They’re also going to continue buying back shares as well. The new era of computing companies worldwide are transitioning from general purpose to accelerated computing and generative AI. That’s from The visionary founder and CEO Jensen Wong. Did any of the other earnings this afternoon, George suggest the same type of revolution or will it take time for the software
providers? Is this right now? Just about building the mechanical base? Um the skeleton upon which everything else will grow. So I think we’ve talked about this earlier with with Nicole it comes down to. I think the hardware first there’s a There’s a There’s a land grab for the hardware. Now Obviously, there’s a land grab for the videos technologies because they’re for the foremost leader out there right now, But there’s some again some trickle down effects that are probably going to happen to secondary players out there with a M D, which again is going to be
launching some revolutionary technologies coming up and in Q four of this year, But right now there’s still the leader and if they’re the lead architect in this in this general of AI business, and especially Complex. You know, uh , you know, computing power, and it’s not just domestically. It’s globally and they’re integrating their systems as well. Their central cloud computing Now they call it their army versus cloud is basically a you know what it is? I mean, it sounds it’s an omni verse or sort of a universe now of computational computing. And of course, the
hardware is the backbone, so it’s remarkable how this company’s changed. I mean, we were talking the video alongside Bitcoin Mining. Just, you know, a couple of years of 23 years back, and we don’t even talk about that anymore because revolutionary there’s no mention of it on the earnings calls anymore. This is the real deal. Clearly this means that Microsoft Amazon meta, those are their big customers, right? Join them. This isn’t happening, because, like I’m Joe Schmo going out to buy a new gaming, Greg You know, maybe if you’re like a developer or a small business,
you’re starting to think about upgrading. Maybe if you are an active Autodesk or photo shop artist you’re thinking about having to power the next kind of wave of tech. You’re going to be embracing. But right now, this is basically the big big giants buying up, which means they need to deliver some products. And we’re gonna have to see some real AI breakthroughs on the customers and pretty soon because that is a lot of money that these companies are laying out to improve the
