Nvidia reports impressive Q2 earnings as AI boom rolls on

00:00 Speaker A

Nvidia second quarter results are just hitting the wire right now. We got Yahoo Finance’s Jake Conley here to break down the numbers. Jake, what do you see?

00:05 Jake Conley

So this is a good beat for Nvidia. revenue at $96.2 billion on the quarter. Wall Street was looking was looking for 92.38 billion. Let’s just note last year that revenue, same quarter last year, 46.74 billion. So you see the jump immediately. Adjusted earnings per share, we’re looking at $2.22 per share. Estimate was $2.9 per share. That is also a beat.

00:27 Jake Conley

At the data, let’s drill into the revenue, the data center revenue, $89 billion. Wall Street was looking for 85.86 billion. That is also a beat. Let’s look at the revenue guidance, the key number for next quarter. We’re looking at 108 billion from Nvidia. Consensus was 105.16 billion. Again, good there as well. And the margin, we’re looking at 75%. Last year that was 72.7. This is going to be a strong report.

00:51 Jake Conley

The thing, the big question’s going to be, it’s not about the numbers. The question’s going to be, what can Jensen come on and say about the financing concerns, about the financing deals, about what we’re seeing in that market. I’ll also note here, Vera Rubin says, now in full production is what we’re getting. That’s another positive for the stock.

01:07 Speaker A

Yeah, you expect a good numbers because we just heard from big tech who told you they’re going to keep spending historic amounts of money to build out their AI dreams. Nvidia is downstream of that. What was also interesting in so many conversations, Jake, is that’s also part of the reason that why analysts come on and say,

01:21 Speaker A

the the reason the multiple, it’s like, I don’t know, 21 times forward, is because increasing concerns that the same customers in big tech are now becoming competitors, Alphabet, Amazon.

01:31 Jake Conley

Exactly. This is part of the the problem that Nvidia Nvidia is now facing. For a long time, they were the dominant player here. Now everyone else is getting into the chip game. Google’s getting in, Amazon’s getting in. You see the competitors building, you see some of that moat maybe starting to deteriorate just a little bit. This also comes with all the circular financing concerns. Is Nvidia the Central Bank of AI?

01:52 Jake Conley

This is all, these are all going to be topics that analysts are going to be looking for Jensen Wong to talk about to maybe try to ameliorate some of these concerns on that call. But to your point, that one of the dominant questions here, how big is the moat still? How big is that technological moat, especially on the chips, on the data centers? What does that look like?

02:07 Speaker A

All right, thank you, Jake. Appreciate it.