The Circuit
Episode 107: NVIDIA Earnings and Peak Nvidia? (Sentiment Wise)
Mar 2, 2025
Ben Bajarin and Jay Goldberg dive into Nvidia's latest earnings report, revealing impressive growth but unexpected market reactions. They explore the implications of AI advancements on Nvidia's future and how portfolio management strategies are evolving. The duo discusses the predictability of GPU supply chains and the stock pressures Nvidia faces. Additionally, they analyze the company’s sales landscape and its transition toward automotive technologies, all while debating the choice between on-prem and cloud AI implementations.
37:59
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Quick takeaways
- NVIDIA's impressive revenue growth in data centers is overshadowed by market apathy, emphasizing the need for unexpected advancements to regain investor confidence.
- The evolving competitive landscape and increasing enterprise demand, particularly in China, highlight the importance of targeted product offerings for future growth.
Deep dives
Market Reactions to NVIDIA's Earnings
NVIDIA's most recent earnings report revealed significant revenue growth in data centers, doubling from $15 billion to $30 billion year-over-year. Despite this impressive performance, the market's reaction was notably apathetic, suggesting that these results were largely anticipated and priced in by investors. Analysts highlight that the stock has underperformed this year after a meteoric rise in the previous years, partly due to high market scrutiny and expectations that have become difficult to surpass. This environment has led to a more cautious investor sentiment, focused on upside surprises which have become increasingly rare given the company's current revenue trajectory.
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