00:00Now, you've had a couple of minutes to read through these results. It looks like on most measures and the look ahead, we're seeing a beat and you can see that in shares. Matt, what is your reaction?
00:10Yeah, I think they hit the buy side expectations. Exactly. So what we've been hearing beforehand, 57 billion on the top line and then guide for mid 60s is kind of what people wanted and they delivered.
00:25And let's go through some of the specifics here. We mentioned the third quarter data center revenue, 51.2 billion dollars ahead of expectations.
00:33As Romain just walked us through commentary from Jensen Wong that when it comes to Blackwell sales, in his view, they are off the charts.
00:40What do you think is most important here? What was the one metric that, you know, you really think that they needed to hit?
00:46I'm going to put two out there for you. I think the Q4 guide.
00:51So getting to that that mid 60s number, it talks a little bit to concerns that spending might might be peaking.
00:59Right. It certainly doesn't look at from what they're guiding. And then the other piece is mid 70s gross margins.
01:06Right. Colette's been telling us for the last few quarters that that's what they were targeting for Q4.
01:11And it looks like they're going to deliver.
01:13And Colette, you're referring, of course, to collect creates the CFO at the company there.
01:17When it comes to the other chips, I know we are all focused on Blackwell.
01:20I mean, of course, they're giving us an update on H2O as well, saying that those sales were also significant in the most recent quarter.
01:27I am curious, Matt, as to where you want to see kind of the balance between the various companies, products and divisions.
01:33I know they have sort of the winning horse right now, but at some point this industry shifts.
01:37And I am curious as to how you want NVIDIA to shift with it.
01:40So I think from their perspective, one of the ways that they can grow revenue without necessarily needing the TAMP to grow as quickly is move more into the products that are adjacent to their GPUs.
01:55So if they're shipping more Grace and more Vera, that adds to the revenue without necessarily customer spending more.
02:05Same thing with the networking side of things.
02:08So I think seeing better growth there is positive for the company.
02:14I also think that if you look at that next wave of spending, so if we're talking neoclouds, if we're talking sovereign data centers, they are more likely to buy the full stack of NVIDIA solutions.
02:25And so from my perspective, they're to some extent going to benefit from that setup.
02:32And we should point out that most of those neoclouds are rallying here in the after hours trade along with NVIDIA and Nibias up about 4 percent here on the day.
02:41Core Weave up about 3 percent.
02:43Matt, when you hear the next year from Jensen Wong later tonight, and I know he'll have some grand projections, grand ambitions for where he sees not just NVIDIA going,
02:53but as he says in the press release, the idea of just the AI ecosystem expanding, what is most important for you for him to say?
03:00You know, a lot of what he says, it's hard sitting in my seat to fully validate.
03:09So when they talk about there being a $3 trillion market, it's great to hear.
03:14It's optimistic.
03:16But, you know, it's 2030 is forever.
03:20So I guess the two things I'd love to hear are, one, that Verirubin's progressing well, right?
03:28It was a little bit of a struggle with Blackwell.
03:31If they actually keep better on Verirubin, that's great.
03:34And then secondly, more inference, right?
03:38If you step back a year, the concern was there weren't dollars being generated from AI.
03:44I'm running into more inference applications.
03:46I'd love to hear him kind of validate what I've been seeing, because inference drives revenue,
03:52which then, you know, obviates some of these concerns around,
03:55is there enough money out there to pay for more data section?
03:59Right.
03:59And, of course, that call less than 34 minutes away.
04:02Matt, before we let you go, I do want to talk a little bit about China.
04:05We know that there's been restrictions on shipment of those advanced chips to China.
04:10Again, that's largely not locked NVIDIA out of that market.
04:14That doesn't seem to be a problem right now.
04:16You take a look at shares.
04:17But longer term, how are you thinking about that dynamic?
04:21So one of my concerns there had really been that if you created this bifurcated state
04:27where you had China AI and USAI, that to some extent NVIDIA might end up losing,
04:33particularly if they weren't allowed to ship to other regions that were China-adjacent
04:37or where chips might somehow gravitate into China.
04:40It seems like the U.S. administration, I mean, today told you that they're not going to sign
04:48or they're not in favor of that act to basically advantage U.S. customers.
04:53And then one of the things we've been hearing about China is that they're having a hard time
04:57manufacturing enough chips.
04:59And so while it's a loss not to be able to ship into China,
05:02it feels like NVIDIA is doing a great job dominating the rest of the world market.
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