Bloomberg Surveillance
Instant Reaction: Nvidia Sales Forecast Falls Short
Aug 28, 2024
Ed Ludlow is a co-host at Bloomberg Technology, while Kunjan Sobhani serves as a Senior Semiconductor Analyst at Bloomberg Intelligence. They discuss Nvidia's recent revenue forecast falling short of expectations, raising concerns about its growth momentum. The duo delves into the complexities of Nvidia's upcoming Blackwell architecture and the implications for the AI market. They also analyze stock fluctuations, market sentiment, and the competitive challenges Nvidia faces, emphasizing the importance of diversification in its customer base.
21:47
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Nvidia's strong second-quarter revenue of $30 billion highlights its leading position in the semiconductor market, particularly in AI.
- Nvidia faces significant pressure to meet high market expectations for future growth, raising concerns about the sustainability of its success.
Deep dives
Nvidia's Earnings Performance
Nvidia reported second-quarter revenue of $30 billion, surpassing analyst estimates of approximately $28.86 billion. This performance cements Nvidia's position as a leading player in the semiconductor market, particularly in the field of AI, as the company also announced an additional $50 billion in share buybacks. Despite the positive results, reaction in the aftermarket was subdued, as expectations had been incredibly high with some analysts predicting third-quarter revenue as high as $39 billion. The contrast between strong actual performance and unmet lofty expectations illustrates the pressure Nvidia faces as it navigates the limits of its rapid growth.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
