Bloomberg Businessweek Instant Reaction: Nvidia Gives Lukewarm Forecast, Stoking Fears of AI Slowdown
Aug 27, 2025
Jay Goldberg, a Senior Analyst for Semiconductors & Electronics at Seaport Research Partners, discusses Nvidia's lukewarm revenue forecast, revealing concerns over a potential slowdown in AI spending. He notes that despite Nvidia's forecast aligning with Wall Street, analysts had higher expectations. The conversation highlights challenges in the Chinese market, the impact of tech giants increasing their capital expenditures, and how internal chip development by competitors could affect Nvidia's growth prospects in a rapidly evolving landscape.
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Strong Quarter, Tepid Guide
- NVIDIA reported Q2 revenue and EPS above estimates but issued a tepid Q3 guide that disappointed investors.
- The company projected $54B (+/-2%) for Q3, which felt underwhelming given elevated market expectations.
Elevated Expectations Set Up Disappointment
- Investor expectations had been conditioned on repeated massive blowout quarters that were hard to sustain.
- The market reaction reflects raised expectations rather than a fundamental collapse in demand.
Blackwell Boosts Margins Not Top Line
- Blackwell architecture revenue grew sequentially but only modestly, helping gross margins trend higher.
- NVIDIA expects to exit the year with mid-70% gross margins as Blackwell ramps.