AI behemoth NVDA reported at 8:20 a.m. this morning and the report is solid. Q4 revenue and forecast were ahead of targets, and the CEO’s comments pointed to strong demand for their new products, implying that the A1 buildout remains upbeat.
- 4Q Rev. $39.3B, Est. $38.25B
- 4Q Data Centre Revenue $35.6B, Est. $34.09B
- 4Q Adj EPS 89c, Est. 84c
- 4Q Adj Gross Margin 73.5%, Est. 73.5%
They have guided to 1Q Revenue of $US43.0B plus or minus 2%. If there’s a weakness in the report, it’s in the company’s gross margin. The forecast calls for a further narrowing, something analysts had expressed concern about. Nvidia has said that’s just the price of getting new products to market, and they’ll widen again. For the current quarter, the company is predicting a gross margin of 71%, about a point shy of consensus: Shares are initially trading little changed in after-hours trade.
- We continue to like Nvidia and have it in our International Equities Hitlist
MM is cautiously bullish NVDA around $US130
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