Nvidia Earnings Call Breakdown: Key Insights & Highlights | WealthWiseGuru"

trading is 100% a mental business it's not just about reading the markets but reading yourself knowing when to enter when to exit and when to just wait it's a mind game and the strongest asset you have is between your ears how do you keep your emotions in check share your tips more data the trend is expected to continue over the trailing four quarters we estimate that inference drove more than 40% of our dident a revenue csps consumer internet companies and Enterprises benefit from the incredible throughput and efficiency of nvidia's inference platform demand for NVIDIA is coming from Frontier Model makers consumer internet services and tens and thousands of companies and startups building generative AI applications for consumers advertising education Enterprise and health care and Robotics the developers desire nvidia's Rich ecosystem and availability in every cloud PSPs appreciate the broad adoption of Nvidia and are growing their Nvidia capacity given the high demand Nvidia h200 platform began ramping in Q2 tipping to large csp's consumer internet and Enterprise company the Nvidia h200 builds upon the strength of our hper architecture and offering over 40% more memory bandwidth compared to the age 100 our data center Revenue in China grew sequentially in Q2 and is significant be very competitive going forward the latest round of ml perf inference benchmarks highlighted in video's inference leadership with both Nvidia Hopper and blackw platforms combining to win gold medals on all tests at computex Nvidia with the top computer manufacturers unveiled an array of Blackwell architecture powered systems and Nvidia networking for building AI factories and data centers with the Nvidia mgx modular reference architecture our oems and odm partners are building more than 100 Blackwell based systems designed quickly and coste effectively the Nvidia Blackwell platform brings together multiple GPU CPU dpu and vlink and vlink switch and the networking chips systems and Nvidia Cuda software to power the next generation of AI across the cases Industries and countries the Nvidia gb2 200 NBL 72 system with the fifth generation NV link enables all 72 gpus to act as a single GPU and deliver up to 30 times faster INF for llms workloads and unlocking the ability to run trillion parameter models in real time coer demand is strong and Blackwell is widely sampling we executed a change to the Blackwell GPU Mass to improve production yeld Blackwell production ramp is scheduled to begin in the fourth quarter and continue in this year 26 in Q4 we expect to F several billion dollars in Black World Revenue upper shipments are expected to increase in the second half of FAL 2025 upper Supply and availability have improved demand for blackw platforms is well above Supply and we expect this to continue into next year networking Revenue increased 16% sequen our ethernet for AI Revenue which includes our Spectrum X endend ethernet platform doubled sequentially with hundreds of customers adopting our ethernet offerings spectrx has broad Market support from OEM and odm partners and is being adopted by csps GPU Cloud providers and Enterprise including xai to connect the largest GPU compute cluster in the world and you are listening to and. and this is Traditional report we plan to launch new every year to support demand for scaling compute clusters from tens of thousands of gpus today to millions of gpus in the near future Spectrum X is well on track to begin a multi-billion dollar product line within a year our Sovereign AI opportunities continue to expand as countries recognize AI expertise and infrastructure at National imperatives for their society and industries Japan's National Institute of advanced industrial science and technology is building its AI bridging Cloud infrastructure 3.0 supercomputer with Nvidia We Believe Sovereign AI Revenue will reach low double digigit billion this year the Enterprise AI wave is started Enterprises also drove sequential Revenue growth in the quarter we are working with most of the Fortune 100 companies on AI initiatives across Industries and a range of applications are fueling our growth including AI powered chat boots generative Ai co-pilots and agents to build new monetizable business applications and enhance F productivity amoc is using Nvidia generative AI or their smart agent transforming the customer experience and reducing customer service cost by 30% service now is using Nvidia for its now assist offering the fastest growing new product in the company system sap is using Nvidia to build dual C cohesity is using Nvidia to build a generative AI agent and lower generative AI development costs snowflakes serves over 3 billion queries a day for over 10,000 Enterprise customers is working with Nvidia to build coal pilots and lastly withdrawn is using Nvidia AI Omniverse to reduce endtoend cycle times for their factories by 50% Automotive was a key growth driver for the quarter as every automaker developing autonomous vehicle technology using AIA in their data centers Automotive will drive multi-billion dollars in Revenue across unpr and Cloud consumption and will grow as Next gener Generation AV models require significantly more compute Healthcare is also on its way to being a multi-billion Dollar business as AI revolutionizes Medical Imaging surgical robots patient care electronic health record processing and Drug Discovery during the quarter we announced a new Nvidia AI FL Foundry service to serch charge generative AI for the world Enterprises with meta's 3.1 collection of models this marks a watershed moment for Enterprise AI companies for the first time can leverage the capabilities of an open- Source Frontier level model to develop customized AI applications to encode their institutional knowledge into an AI flywheel to automate and accelerate their business exent is the first to adopt the new service to build custom llama 3.1 models for both its own use and to assist clients seing to deploy ctive AI applications Nvidia Nims accelerate and simplify model deployment companies across Healthcare energy Financial Services Retail transportation and Telecommunications are adopting Ms including aramco Lowe's and Uber at& realiz 70% cost savings and eight times latency reduction after moving into Nims for generative Ai call transcription and classification over 150 partners are embedding NS across every layer of the AI EOS system we announced Nim agent blueprints a catalog of customizable reference applications that include a full Suite of software for building and deploying Enterprise generative AI applications with Nim agent blueprints Enterprises can refine their AI applications over time creating a datadriven AI flywell the first Nim age of blueprints include workloads for customer service computer aided drug Discovery and Enterprise retrieval augmented generation our system integrators technology solution providers and system Builders are bringing Nvidia Nim agent blueprints to Enterprises Nvidia Nim and Nim agent blueprints are available through the Nvidia AI enterprise software platform which has great momentum we expect our software SAS and support Revenue to approach a $2 billion annual run rate exiting this year with Nvidia AI Enterprise notably contributing to growth moving to gaming and AI PCS Gaming revenue of 2.88 billion increased 9% sequentially and 16% year on year we saw sequential growth in console notebook and dust help revenue and demand is strong and growing and channel inventory remains healthy every PC with RTX is an AI PC RTX PCS can deliver up to 1,300 AI tops and there are now over 200 RTX AI laptops designed from leading PC manufacturers with 600 AI powered applications and games and an installed base of 100 million devices RTX is set to revolutionize consumer experiences regena AI inidia Ace a suite of generative AI Technologies is available for RTX AI PCS EA break is the first game to use Nvidia Ace including our small small large small language model minitron 4B optimized on device inference the Nidia gaming in ecosystem continues to grow recently add RTX and DSs titles including indana Jones and the great circle dun Awakening and Dragon Age The Veil guard the GeForce now Library continues to expand with total catalog size of over 2,000 titles the most content of any cloud service moving to Pro visualization revenue of 454 million was up 6% sequentially and 20% year onye demand is being driven by Ai and graphic use cases including model fine-tuning and Omniverse related workloads automotive and Manufacturing were among the key industry verticals driving growth this corner companies are racing to digital Ates workflows to drive efficiency across their operations the world's largest electronics manufacturer foxcom is using Nvidia Omniverse to power digital twins of the physical plan that produce Nvidia black systems and several large Global Enterprises including Mercedes ben Mercedes-Benz signed multi-year contracts for NVIDIA Omniverse Cloud to build industrial digital twins of factories we announced new Nvidia USD Nims and connectors to open Omniverse to new Industries and enable developers to incorporate generative AI co-pilot and agents into USD workflows accelerating their ability to build highly accurate Virtual Worlds wpp is implementing usdm microservices AI enables content creation ping for customers such as the Coca-Cola Company sequentially and up 37% year on year heree growth was whatever challenge in the endend driving at scale category out performing more than 400 entries worldwide Boston Dynamics byd Electronics figure intrinsic seens fild Ani and Paradigm Robotics are using the Nvidia Isaac robotics platform for autonomous robot Farms humanoids and mobile robots now moving to the rest of the p&l Gap gross margins were 75.1% and non-ap gross margins were 75.7% down sequentially due to a higher mix of new products within Data Center and inventory Provisions for low yielding black raw material sequentially Gap and non-gaap operating expenses were up 12% primarily reflecting higher compensation related costs cash flow from operations was 14.5 billion in Q2 we utilize cash of 7.4 billion toward shareholder returns in the form of share repurchases and cash dividends reflecting the increase in dividend for sh our board of directors recently approved a $50 billion share repurchase authorization to add to our remaining 7.5 billion of authorization at the end of Q2 let me turn the outlook for the third quarter total revenue is expected to be 32.5 billion plus or minus 2% our third quarter Revenue Outlook incorporates continued growth of our Hopper architecture and sampling of our Blackwell products we expect Blackwell production ramp in Q4 Gap and non-ap growth margins are expected to be 74.4% and 75% respectively plus or minus 50 basis points as our data center mix continues to Shi to new products we expect this trend to continue into the fourth quarter of fiscal 2025 for the full year we expect gross margins to be in the mid 70% range Gap and non-gaap operating expenses are expected to be approximately 4.3 billion and 3.0 billion respectively full year operating expenses are expected to grow in the mid to Upper 40% range as we work on developing our next generation of products Gap and non-gaap other income and expenses are expected to be about 350 million including gains and losses from non-affiliated Investments and publicly held Equity Securities Gap and non-gaap tax rates are expected to be 177% plus or minus 1% excluding any discreet items further Financial details are included in the C commentary and other information available on our IR website we are now going to open the call for questions operator would you please help us and PO for questions thank you and at this time when you first get into trading don't tell anybody that you're trading don't tell your family and don't tell your friends do not tell anybody there is not a single person in this world who understands trading like a Trader only a Trader understands the patience and the discipline required and how much time it takes to be successful every single person around you is going to say it's gambling that you're risking everything and that it's a waste of time but great things take time so be patient and keep going