What’s going on here?
Nvidia beats Sales And benefit Expectations for the seventh consecutive quarter.
What does this mean?
The bar for Nvidia’s recent results was higher than a recently broken Olympic record. share had already risen 160% this year — and with Nvidia making up nearly 7% of the S&P 500 index, its performance would be noticed by the masses. Good thing the company brought in $30 billion in revenue last quarter — 122% more than the same period last year, and better than the $28.7 billion analysts had forecast. Profit was also better than expected, at $16.6 billion — 166% more than the same period last year. The all-star topped it all off by increasing its share buyback program by $50 billion and issuing higher-than-expected guidance for the quarter. The thing is, investors were hoping for so much that they initially sent the stock lower. down a touch after the results.
Why should I care?
Enlarge: Tough crowd.
Investors expect the very best from Nvidia, so even the slightest slip-up can be reflected in the stock price. It’s worth remembering that rumors of a delay in the release of the next Blackwell chip recently hurt the company’s stock price, although it didn’t take long for investors to get back on board. But at least the company’s four biggest customers are more reliable. Major customers Microsoft, Meta, Alphabet and Amazon account for more than 50% of Nvidia’s data center. revenueEven better, these four companies plan to invest even more money in AI over the rest of the year.
The overall picture: Imitation is the sincerest form of flattery.
While Nvidia is the leading company producing the cutting-edge chips used in artificial intelligence, its runaway success is no secret, so companies like Cerebras, d-Matrix and Groq are naturally focusing on cheaper, more specialized chips to stay competitive. Cerebras even claims that its solution is 20 times faster than Nvidia’s current Hopper chips and sells for a fraction of the price.
