This is a departure from today’s morning submission, which you can apply To receive in a arrived mail every morning together with:
Dust is located on the latest Nvidia (Nvda) Week of Earnings.
And I think it’s important to review where things are for the most important stock in the world (Sorry, Apple (Aapl)). Why? Because you should think about whether a return to Nvidia is an opportunity to buy or start a deeper sale because expectations are reset.
We know that Nvidia’s margins in the first half of the year will be below their usual robust levels while blackwell AI chips are increasing. I would say that the street knew it on the eve of the results, so they overturned nothing.
On Nvidia’s earning call, Execs tried to push themselves to bears, who outlined a narrative that there would be a digestion period for investment in AI by hyperscalers like Amazon (AMZN) and that Nvidia’s margins may have reached its peak.
“Once our Blackwell is completely rounded up, we can improve the costs and gross margin,” said Nvidia Colette Kress. “So we expect it will probably be in the mid-70s later this year.”
We also know that, basically, Nvidia is strong and will probably remain strong.
The revenue of the fourth quarter increased 12% consecutively and 78% compared to the previous year. The sale of the data center has more than doubled since the previous year. Earnings Assessments of analysts.
“We will have to continue scaling because demand is quite high and customers are anxious and impatient to get their Blackwell systems,” founder and CEO of Nvidia Jensen Huang said.
Listen: Nvidia could be unstoppable
Nowhere in the guidelines or comments of the Huang Company I felt that AMD (AMD) takes over the market share of Nvidia; Ditto custom chips from Amazon. I have not heard the hint that hyperscalers are sending a and chips back to Nvidia or they stopped to spoil over Jensen to get more of these chips at all costs.
Composed, I would claim that we heard from Nvidia in terms of demand and the margins were well known entry into the results. Therefore, the sale could prove to be an excessive reaction, the function of investors with the aim of modeling mixed guidelines in the first quarter in the next two years.
But there are a few things we don’t yet know about Nvidia guaranteeing more attention. They play in the long -term thesis of the bulls.
For starters, there is a Huang’s point about Deepseek R1, which requires 100 more more calculated resources compared to the pre-trading models due to the scalp time of conclusion. Look, most of us have no idea what that means at all. But the occasional observer could read it because the market is strong on Deepsek, and there may be a lot of advanced estimates of NVIDIA, because Deepseek and other reasoning models are obtained.
