NVIDIA’s Impressive Earnings: Stock Dips, What’s Ahead?

it's the moment the world has been waiting   for NVIDIA earnings report is  in and the results are pretty good here to break it all down for us are our  Market beat analysts Chris marot and Thomas   Hughes guys let's get to it right away Thomas  what are these results looking like right now   well I would say from the initial glance that  it was everything that market was hoping for   and a little bit more I mean they grew by 122%  year-over-year that outpaced the consensus by   1,000 basis points gross margin widened by 500  basis points operating income is up 175% EPS   is up almost 170% it outperformed as well the  guidance is strong calling for another quarter   of 100% growth I think that's about 2500 basis  points better than expected within all of this   the cash flow is robust the cash on the balance  sheet nearly doubled and they did a surprise   $7.2 billion share by back which is going to be  highly supportive of the stock over time because   now we're going to expect that to happen from on  a quarter to quarter basis they've got the cash   flow they should be able to continue repurchasing  shares and paying dividends at this same Pace yeah   tellas that's exactly what you said Nvidia needed  to do is really outperform everyone's expectations   and it looks like they have in a pretty big way  let's talk about Revenue first Chris it looks   really impressive yeah I mean they everybody  was looking to see if Nvidia was was going to   not only beat but if they were going to beat  by a large margin and they did um $30 billion   in Revenue like Thomas said that's 122% higher  than higher year-over-year earnings came in even   better because at 67 cents per share they were  estimated to come in at on on the market beat site   we're saying the consensus estimate was 59 cents  a share and year-over-year last year in the same   quarter they were at 27 cents this year so they're  just crushing it that way they were predicting   um margins I see at 70 % uh they're projecting  for the full year so they're not going to slow   down as far as earnings growth goes and I also  noticed that they're talking now that blackwall   ship chips are going to ship in the fourth quarter  so investors can look forward to that in the next   quarter yeah right I would say that the results  really are strong all the way through yeah all   segments produce growth now obviously the computer  and or the Computing and network segment did the   best that's where the data center uh segment  is data center is up 154% but even Automotive   is up 37% and OEM is up 33% they've got double  digit gains in the graphic section uh so yeah   this is just a strong report all the way around  I think everyone's breathing a little sigh of   relief because this is what they were looking for  but what happened at the or the end of the close   today why did nvidia's stock drop right before  this Stellar report came out well even saying   that the results are all that the market wanted  them more the market was kind of wanting that it   was expecting that because that is the trend so  this is turning into a little bit of a sell the   news event but the question is are people selling  the news because it's time to get out of the stock   which I think is probably not the right thing to  do but it's probably just this little near-term   knee-jerk reaction to okay it wasn't like so  mind-bendingly good right we're going to sell off   a little bit the market will regroup a little bit  but then I believe the rally will continue High   I would be very surprised if this thing doesn't  uh pop much higher in the pre-market tomorrow I   think this is a this is a great place and then  the highspeed algorithms are going to come in   in the morning and clean up whatever dip this is  I think they're going to eat that right up this   is this this report was too good to ignore I mean  this was like Thomas said this was everything the   market was expecting and that may not have been  enough to satisfy some investors but there's   absolutely no reason for people to be selling  Nvidia right now right some of this postmarket   dip could be because Traders are waiting for  the conference call the conference call will   have lots of more details and insight than what  the the initial release is going to give and SO   waiting for that probably a good idea too right  yeah we'll break that all down here on Market beat   as well after that earnings call tomorrow um but  what do we expect the market to do over the next   few weeks I think we talked about we expected some  kind of volatility with this earnings report just   because everyone is watching it but with a solid  report like this can they satisfy people enough to   help lift the whole Market I think that Nvidia  stock will be well supported there may be some   volatility over the next month just because it is  the end of the summer we're going into September   um if you think about you know this idea of sell  in May and go away September is when people come   back and that's when they start getting back into  the market so we may see some profit taking and   some repositioning September is typically a bad  month for stocks in general but especially so for   the chip sector all that aside the underlying  fundamentals with with Nvidia are more than   robust so this stock really should continue  to move higher once we get past what could be   a little bit of volatility I think like Thomas  said I think investors are waiting to hear what   Jensen Wong has to say on the conference call I  think one of the things that they want to hear is   they want to hear the words come out of his mouth  that demand for AI is strong because there's been   some sentiment coming into this report that maybe  companies were going to start um slowing down on   their AI spend as as the economy might be getting  weaker but I'm not sure that that is supported by   nvidia's results but I think investors still want  to hear the words they want to hear AI spending   is strong and they expect that to be strong for  their customers right also when the in the um   the conference call we'll probably hear some more  news at about deals and Partnerships the company   has been making New Deals and Partnerships  I mean seems like on a week- toe basis for   the last two years soon it's going to have a deal  with every important major company on the market   today and just further cement its position  as uh Central to the AI infrastructure y well   thank you both for breaking down the earnings  report from Nvidia good news for the company   today but still more to come in the call that's  happening this evening we will break down what   Market reacts to tomorrow right here on Market  beat thanks for watching and happy investing