Good morning. QQQs +13 bps in the pre as NVDA - 3% weighed down given TheInformation article overnight. Jensen speaking at 10:30 pst at NVIDIA SC24 (Youtube link). BTC +1%; China +1%; yields +2-4bps across the curve.
Before we get to the recap, some quick bogeys for this week…
NVDA (Wed post-market):
Q3 Total Revs: $34.5B vs street at $33.2B ($2B ahead of the guide)
Q3 DC Revs: $31B vs street at $29.3B
Q3 GMs: 75%+ vs street at 75% and guide 74.4% to 75%
Q4 Total Revs: Total Rev guide $38B vs street at $37B
Q4 GMs: Inline with street at 73.3% at the midpoint
PANW (Wed post-market):
Q1 Billings: $2.2B, 8.5% y/y vs street at 6.5% y/y
Q1 NGS NNARR: ~$175M vs street $170M
Q2 NGS NNARR guide: $290M (street $285M)
SNOW (Wed post-market):
Q3 Product revs: $875M vs guide $850-$855M
Q3 RPO: $5.3M vs street $5.25B
Q4 Product rev guide: $900M vs street at $895M
Unlikely to guide F26 yet
Let’s get to it…
NVDA: Nvidia Customers Worry About Snag With New AI Chip Servers
Nvidia is grappling with new problems related to its much-anticipated Blackwell graphics processing units for artificial intelligence: how to prevent them from overheating when connected together in the customized server racks it has designed.
In recent months, Nvidia has asked its suppliers to change the design of the racks several times as it has tried to overcome the overheating problems, according to Nvidia employees who have been working on the issue, as well as several customers and suppliers with knowledge of it. Word of the repeated design changes has sparked anxiety among customers about a potential delay in when they will be able to use the racks.
TMTB: Does’t seem like a ton of meat on the bone of this article imo and this tweet from Michael Dell last night doesn’t jive with article
Last time TheInformation had an article on delays on a Sunday it marked the bottom for a bit although set up was different as stock had come down as rumors had already been swirling around BW delays.
Interestingly, AMD also outperformed the QQQs 5% that day fwiw (Clev also positive this morning):
Not making a call on either name today, just pointing out…
TSLA: Trump Team Is Seeking to Ease US Rules for Self-Driving Cars
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