Nvidia (NVDA US) delivered another stellar result, but expectations were so high in many parts of the market that the stock initially slipped ~8% in after-market trade. Revenue of $30.04bn was a little better than the $28.86bn average estimates, but as we covered yesterday morning, they have beaten by a lot more in recent periods. We also saw gross profit margins narrow a bit partly due to some design glitches with its next-generation chip, however where ‘looking’ for reasons to backfill the share price move to a degree.
- Second-quarter sales rose 122% year-over-year to $30.04 billion – which is huge.
- Net income jumped 168% year-over-year to $16.6 billion – phenomenal!
- NVDA projects roughly $32.5 billion in third-quarter sales, topping analyst estimates of $31.7 billion i.e. ‘only’ a 2.5% which you’d probably call a miss for NVDA!
The outlook was also below some of the market’s most lofty expectations, and the coming weeks will be a fascinating test of the AI boom, at least in the short term. The huge capital moves in the US continue to be very market-supportive/
- Nvidia’s board approved another $50 billion stock buyback, about half of CSL Ltd’s (CSL) market cap
- In May, Apple Inc (AAPL US) announced an enormous $110bn buyback.
MM likes NVDA nearer $US100
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