Nvidia earnings blew up: quarterly revenue $96.22 billion, doubled year over year; next quarter directly points to $108 billion—both beat expectations!
Nvidia just released its earnings report. For the second fiscal quarter, revenue reached $96.22 billion, up more than 100% year over year and above market expectations. The company also provided revenue guidance of about $108 billion for the next quarter, which exceeded Wall Street expectations as well. After the report, the stock price briefly rose more than 4% in after-hours trading.
Even more striking, Nvidia also announced an expansion of its cooperation with AWS, planning to deploy about 2 million GPUs globally by 2028. But there’s also a negative signal worth watching: cost pressure for the next-generation products is rising. Gross margin is expected to slide from about 75% to around 74%, indicating that as AI hardware sells more, it also becomes more expensive—both to sell and to manufacture.
However, this also implies a risk: while profits are increasing, free cash flow isn’t. This is mainly because many customers’ accounts receivable haven’t been collected. Coupled with the fact that Nvidia has provided guarantees for customers’ massive loans, it suggests that the cash flow behind customers’ ongoing spending is tightening.$NVDAB $NVDA.US
Nvidia just released its earnings report. For the second fiscal quarter, revenue reached $96.22 billion, up more than 100% year over year and above market expectations. The company also provided revenue guidance of about $108 billion for the next quarter, which exceeded Wall Street expectations as well. After the report, the stock price briefly rose more than 4% in after-hours trading.
Even more striking, Nvidia also announced an expansion of its cooperation with AWS, planning to deploy about 2 million GPUs globally by 2028. But there’s also a negative signal worth watching: cost pressure for the next-generation products is rising. Gross margin is expected to slide from about 75% to around 74%, indicating that as AI hardware sells more, it also becomes more expensive—both to sell and to manufacture.
However, this also implies a risk: while profits are increasing, free cash flow isn’t. This is mainly because many customers’ accounts receivable haven’t been collected. Coupled with the fact that Nvidia has provided guarantees for customers’ massive loans, it suggests that the cash flow behind customers’ ongoing spending is tightening.$NVDAB $NVDA.US