Nvidia Earnings to Give Markets a View of Billions Spent on AI

Bloomberg

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00:00JUST WALK US THROUGH WHAT WE EXPECT IN TERMS OF THE REPORTING

00:05QUARTER AND IN TERMS OF THE OUTLOOK.

00:09IN TERMS OF THE QUARTER REPORTING THE Q3, THE MARKET IS

00:12LOOKING FOR REVENUES OF ABOUT $55 BILLION, SO THAT WILL BE UP

00:16ABOUT 57% YEAR-ON-YEAR, AND EPS OF ABOUT $1.25, $1.26.

00:23I THINK MORE IMPORTANTLY LOOKING TO THE Q4, THE OUTLOOK THEY

00:27WILL GIVE THE MARKETS LOOKING FOR THEM TO KIND OF GUIDE TO

00:31AROUND $62 BILLION, SO THAT WOULD BE ON REVENUE, THAT WOULD BE UP

00:35ABOUT 58% YEAR-ON-YEAR, SO KIND OF KEEPING THAT SAME MOMENTUM

00:39THAT THEY ARE EXPECTED TO DELIVER FOR THE Q3.

00:42AND I GUESS BEYOND THAT, THE MARKET WILL BE LOOKING FOR ANYTHING

00:45THEY CAN DO TO KIND OF PROVIDE REASSURANCE THAT BEYOND THIS

00:50BIG HYPER SCALER INVESTMENT CYCLE, THERE IS NATURAL DEMAND

00:54COMING THROUGH FROM CONSUMERS AND ENTERPRISES TO KIND OF

00:58SUSTAIN THE AI MOMENTUM INTO THE MIDTERM.

01:02IN TERMS OF GENERATING ENOUGH REVENUE, GENERATING ENOUGH

01:06PROFIT TO JUSTIFY THEIR INVESTMENT, NVIDIA IS NOT ONE

01:10OF THOSE COMPANIES THAT WORRIES THIS MARKET, RIGHT?

01:12I MEAN, THEY ARE NOT TRADING AT INCREDIBLY HIGH VALUATIONS.

01:16NO, I THINK THE NEAR TERM IS NOT A PROBLEM AT ALL.

01:21THEY HAVE GOT UP TO $500 BILLION OF EXPECTED REVENUE OVER THE

01:26NEXT 12 MONTHS OR SO THAT THEY TALKED ABOUT RECENTLY.

01:29AND THAT IS KIND OF UNDERPINNED BY THE HYPER SCALERS INVESTMENT

01:32CYCLE.

01:33THE QUESTION IS IF THAT INVESTMENT CYCLE DOESN'T GET END CUSTOMER

01:39DEMAND FROM ENTERPRISE AND CONSUMERS, THEN THAT HYPER SCALER

01:43INVESTMENT CYCLE WILL COME TO AN END QUICKER THAN EXPECTED AND

01:46THAT WOULD THEN BECOME A PROBLEM FOR THE MIDTERM GROWTH

01:49OUTLOAD FOR NVIDIA.

01:51BUT FOR THE KIND OF NEAR TERM, I THINK THEY ARE IN A VERY

01:54COMFORTABLE POSITION, INCREDIBLY HIGH MARGIN, 74%, 75% GROSS

01:58MARGIN BUSINESS, SO IN A STRONG POSITION.

02:02PASS, YOU HEAD, HAVE THEN IN A STRONG POSITION.

02:03YOU WILL PASS ON THE LINE.

02:04GOOD.

02:05GOOD.

02:06GOOD.

02:07GOOD.

02:08BABY.

02:09GOOD.

02:10GOOD.

02:11GOOD.

02:12GOOD.

02:13GOOD.

02:14GOOD.

02:15GOOD.

02:16GOOD.

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