it's the moment the world has been waiting for NVIDIA earnings report is
in and the results are pretty good here to break it all down for us are our
Market beat analysts Chris marot and Thomas Hughes guys let's get to it right away Thomas
what are these results looking like right now well I would say from the initial glance that
it was everything that market was hoping for and a little bit more I mean they grew by 122%
year-over-year that outpaced the consensus by 1,000 basis points gross margin widened by 500
basis points operating income is up 175% EPS is up almost 170% it outperformed as well the
guidance is strong calling for another quarter of 100% growth I think that's about 2500 basis
points better than expected within all of this the cash flow is robust the cash on the balance
sheet nearly doubled and they did a surprise $7.2 billion share by back which is going to be
highly supportive of the stock over time because now we're going to expect that to happen from on
a quarter to quarter basis they've got the cash flow they should be able to continue repurchasing
shares and paying dividends at this same Pace yeah tellas that's exactly what you said Nvidia needed
to do is really outperform everyone's expectations and it looks like they have in a pretty big way
let's talk about Revenue first Chris it looks really impressive yeah I mean they everybody
was looking to see if Nvidia was was going to not only beat but if they were going to beat
by a large margin and they did um $30 billion in Revenue like Thomas said that's 122% higher
than higher year-over-year earnings came in even better because at 67 cents per share they were
estimated to come in at on on the market beat site we're saying the consensus estimate was 59 cents
a share and year-over-year last year in the same quarter they were at 27 cents this year so they're
just crushing it that way they were predicting um margins I see at 70 % uh they're projecting
for the full year so they're not going to slow down as far as earnings growth goes and I also
noticed that they're talking now that blackwall ship chips are going to ship in the fourth quarter
so investors can look forward to that in the next quarter yeah right I would say that the results
really are strong all the way through yeah all segments produce growth now obviously the computer
and or the Computing and network segment did the best that's where the data center uh segment
is data center is up 154% but even Automotive is up 37% and OEM is up 33% they've got double
digit gains in the graphic section uh so yeah this is just a strong report all the way around
I think everyone's breathing a little sigh of relief because this is what they were looking for
but what happened at the or the end of the close today why did nvidia's stock drop right before
this Stellar report came out well even saying that the results are all that the market wanted
them more the market was kind of wanting that it was expecting that because that is the trend so
this is turning into a little bit of a sell the news event but the question is are people selling
the news because it's time to get out of the stock which I think is probably not the right thing to
do but it's probably just this little near-term knee-jerk reaction to okay it wasn't like so
mind-bendingly good right we're going to sell off a little bit the market will regroup a little bit
but then I believe the rally will continue High I would be very surprised if this thing doesn't
uh pop much higher in the pre-market tomorrow I think this is a this is a great place and then
the highspeed algorithms are going to come in in the morning and clean up whatever dip this is
I think they're going to eat that right up this is this this report was too good to ignore I mean
this was like Thomas said this was everything the market was expecting and that may not have been
enough to satisfy some investors but there's absolutely no reason for people to be selling
Nvidia right now right some of this postmarket dip could be because Traders are waiting for
the conference call the conference call will have lots of more details and insight than what
the the initial release is going to give and SO waiting for that probably a good idea too right
yeah we'll break that all down here on Market beat as well after that earnings call tomorrow um but
what do we expect the market to do over the next few weeks I think we talked about we expected some
kind of volatility with this earnings report just because everyone is watching it but with a solid
report like this can they satisfy people enough to help lift the whole Market I think that Nvidia
stock will be well supported there may be some volatility over the next month just because it is
the end of the summer we're going into September um if you think about you know this idea of sell
in May and go away September is when people come back and that's when they start getting back into
the market so we may see some profit taking and some repositioning September is typically a bad
month for stocks in general but especially so for the chip sector all that aside the underlying
fundamentals with with Nvidia are more than robust so this stock really should continue
to move higher once we get past what could be a little bit of volatility I think like Thomas
said I think investors are waiting to hear what Jensen Wong has to say on the conference call I
think one of the things that they want to hear is they want to hear the words come out of his mouth
that demand for AI is strong because there's been some sentiment coming into this report that maybe
companies were going to start um slowing down on their AI spend as as the economy might be getting
weaker but I'm not sure that that is supported by nvidia's results but I think investors still want
to hear the words they want to hear AI spending is strong and they expect that to be strong for
their customers right also when the in the um the conference call we'll probably hear some more
news at about deals and Partnerships the company has been making New Deals and Partnerships
I mean seems like on a week- toe basis for the last two years soon it's going to have a deal
with every important major company on the market today and just further cement its position
as uh Central to the AI infrastructure y well thank you both for breaking down the earnings
report from Nvidia good news for the company today but still more to come in the call that's
happening this evening we will break down what Market reacts to tomorrow right here on Market
beat thanks for watching and happy investing