00:00Let's be honest, there's hardly any reaction at all.
00:03You know, that is the whisper number for the fiscal second quarter,
00:07the period we're currently in, revenues 91 billion, plus or minus 2%.
00:12You know, the bull case was for $90 billion of revenue.
00:16We won't learn much more until the call, right?
00:19The broader story is, are they moving beyond hyperscalers
00:22to a more diverse group of customers?
00:25Like, if you were to aggregate the sell-side commentary going into the print,
00:28the numbers are just irrelevant.
00:30No matter how fantastical, they're going to look a bit more deeply.
00:33On the new reporting structure, you've just got to forgive me
00:36and give me a bit more time to read about it,
00:38because I haven't got a clue, to be honest about that.
00:41Well, I don't think anyone outside of NVIDIA has a clue
00:43about the new reporting structure, so we'll give you a few minutes.
00:45NVIDIA share is down in the after hours, down by about 2.6%.
00:48We're going to let Ed look at some of those numbers
00:51and that new reporting structure.
00:52In the meantime, we do want to note that the company reports
00:56$80 billion added when it comes to a share buyback authorization.
00:59That news crossing just moments ago now,
01:02a redhead on the Bloomberg terminal.
01:04NVIDIA boosting its quarterly dividend to $0.25 a share
01:07from $0.01 per share.
01:09I want to bring back Paul Meeks,
01:11head of technology research at Freedom Capital Markets.
01:13Paul, your reaction?
01:15Pleased with these numbers?
01:17It seems to me that everything is in order.
01:20Like everybody else in the preview commentary,
01:24the most important metric that they could release ahead of a call
01:29was this revenue guide, and it looks fine.
01:31I'm a little bit, I don't want to say dubious,
01:35but a little bit confused by the change in the reporting structure.
01:37Why would a company do that?
01:40A company like NVIDIA that has such a following right now,
01:45so many analysts covering this,
01:47some people consider it a macro event when it reports earnings.
01:50Why change reporting structure right now?
01:53Yeah, one of the things that they are doing
01:55is they're trying to build a walled garden
01:59just like Apple did in a previous technology transition
02:03by going beyond the GPUs
02:06and interconnecting in the data center,
02:09all the different pieces.
02:10So this may not be some sort of dodge,
02:13you know, because the company typically is first class,
02:16very transparent,
02:17but it might be just reflective
02:20that they are moving beyond just selling GPUs
02:24and they want to organize their business to prove it.
02:28Kunjan, let's bring you back in here,
02:31Bloomberg Intelligence Senior Semiconductor Analyst,
02:33and just get your initial thoughts
02:35on these first few numbers.
02:38Yeah, look, everything looks kosher.
02:40Like your earlier guest was saying,
02:41you know, they have made us habituated
02:43to expect them to come out and expect them to beat
02:47by such a range, mid-single digits.
02:49And that's a problem.
02:50When you do that, it has become sort of a baseline,
02:53no longer something that stands out.
02:55If they didn't beat with this magnitude,
02:58that would be something worse.
02:59I do like the buyback announcement.
03:01And to address that resegmentation,
03:04I think we like that move.
03:06I mean, look, our model has been trying to guesstimate
03:09this breakdown that they're giving in the data center business
03:12by the type of end customers for a while now.
03:15It's always painful to really get that out of them
03:18and figure it out.
03:19So we like that move that now they are coming up
03:22and disclosing that breakdown.
03:23That also allows people to really see
03:26that it's not just the four top cloud customers
03:28that they're buying and running the business for NVIDIA, right?
03:32There's also growth coming from other vectors
03:35that people often miss out
03:36because it was not publicly showcased.
03:38And Ed, we are just getting a headline crossing
03:41that the company is saying that
03:43no shipments of data center hopper products to China.
03:47How does that live up to the expectations
03:49of what you and Jensen Huang had discussed?
03:54I don't know how you did that so quick.
03:55I literally just posted that in the blog
03:57before you read it out.
03:59This is real time, Ed.
04:01That's the base case assumption.
04:03I mean, what Colette Cress, the CFO,
04:04is pointing out literally in her CFO commentary
04:09as opposed to figuratively is that
04:10this is the fiscal first quarter financial year 27.
04:14You know, the base case assumption
04:15was no product data center wise to China.
04:18Like, so it meets that expectation.
04:20Reminding me in that note
04:21that in the first fiscal quarter of the fiscal year 26,
04:25they had almost $4.6 billion of sales
04:29in that same period one year ago.
04:31So that's all we're learning, really.
04:33There was some other stuff that I scanned through
04:35on the revenue highlights of the CFO commentary.
04:37I thought we'd learn more.
04:38But right now, that's it.
04:40What's the question you'd ask about that on the call
04:42if you were given the chance, Ed?
04:43Why did you tell everyone in March
04:46that you were ramping up your supply chain
04:49and that you had both orders from Chinese companies
04:51along with the US licenses
04:53to issue those orders?
04:56Why did you say that?
04:57You know, if the state of play
04:58is clearly based on the president's visit,
05:02that China is not going to permit
05:04its tech companies right now
05:05to place those orders.
05:06And why did Ed Ludlow not ask Jensen
05:08that more explicitly on Monday?
05:09That's probably what I would reflect on.
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