$NVIDIA(NVDA.US)

I did not see a red flag in that Nvidia print.

Genuinely, I’m curious what red flags people are seeing. I’d be the first to nit-pick and try to figure out what the street is upset about, but this was genuinely one of the best calls Jensen has ever had.

It’s not even about the stock. Price is still below where it was just last week. I am trying to figure out if there is a reasonable argument outside of “AI is a bubble” to actually be meaningfully bearish here.

Jensen answered every question in a way that just proved demand was stronger than supply and Nvidia’s growth was not going to slow down.

- Beat the whisper numbers by a crazy amount including the guide.

- Bought back $20B of stock and guided to buy back a ton more.

- Kept margins basically the same.

- Answered circular financing fears by explaining how their model creates more proliferation of AI, even if bears don’t like their answer.

- Explained how open source and frontier models will work together.

- Said that their growth is only constrained because of the supply chain and nothing else.

- 40% of revenues are hyperscalers and even with increased competition, companies like Amazon pledged to buy ANOTHER 2M GPUs and even more CPUs.

- Street thought they’d do 40% rev growth next year and Jensen said the floor is basically 70% now.

Outside of the common bear cases, what was wrong with the print? Again, I don’t care much about the stock not moving because that is up to algos/the street/macro but for the company itself, I just do not see what to be meaningfully concerned about.

Source: amit