NVIDIA guided Q3 revenue to $108 billion, far above Street estimates, and shares closed up 8.74% on the earnings report. The results counter a bear thesis that argued hyperscalers building their own chips would soon overtake the company.
NVIDIA reported Q2 revenue of $96.22 billion, up 105.85% year-over-year, then guided Q3 revenue to $108 billion, plus or minus 2%. Shares closed at $227.98, up 8.74% in the session.
Guidance Tops Street Expectations
Jim Cramer, opening Mad Money, said the bearish case on NVIDIA had rested on the idea that hyperscalers desperate to develop their own chips would soon overtake the company. That thesis had held the stock market view on NVIDIA back for months, according to Cramer.
According to Cramer: "Nvidia projects that they can put up 70% revenue growth in the next fiscal year", versus a Street estimate of only 45%. He called that forward number the one to remember from the report.
Huang Frames Demand as a Step Change
NVIDIA chief executive Jensen Huang framed the demand as a step-change in usefulness, saying AI has moved from experimentation to productive, revenue-generating work.
Cramer paired NVIDIA's report with Salesforce's same-evening earnings, arguing both cut against bear theses that had been building for months. He told viewers who simply held both stocks through the earnings date, rather than trading around them, that they were rewarded for it.
Source: 24/7 Wall St. (via Yahoo Finance)
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