Getting this out early as I finish up the morning wrap…
NVDA: Solid quarter. Bullish call. Story intact as BW begins to ramp into next year
Key points from the call:
Scaling isn’t dead
BW on track to exceed prior guide of "several billions dollars” while it’s possible Hopper grows into Jan Q
Networking was weak -15% q/q but will grow in Jan Q
Gross margins will decline to 71-72.5% before rebounding to mid 70s mid year
NVDA beat this q’s guide by $2.5B and guided the next q up by $2.5B, which is above their typical cadence of $2B/$2B (last quarter was $2B / $2.5B) so assuming another $2.5B beat (which talking to some buysiders think is conservative), we get to ~$40B+ which is around where buyside is shaking out for Jan Q and where they were before going into the print.
Main nitpick is why networking down…no clear answer but co said it would return to growth next q
Sell-side raising targets and Citi adds as a positive catalyst watch heading into CES. Next catalysts are TSM Nov data, UBS conf in beginning of Dec, Jensen keynote/analyst mtg at CES, then Jan Q, then GTC
What does stock do today?
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