CashNews.co
Nvidia (NVDA) released its second quarter earnings report which beat expectations on the top and bottom line, with a forecast for the current quarter that also beat expectations. The chip giant reported adjusted earnings of $0.68 per share compared to the expected $0.64. Revenue was $30.0 billion versus an estimated $28.86 billion.
In addition, CFO Colette Kress said in a statement, “Blackwell production ramp is scheduled to begin in the fourth quarter and continue into fiscal 2026. In the fourth quarter, we expect to ship several billion dollars in Blackwell revenue.”
D.A. Davidson managing director Gil Luria joins Market Domination Overtime to discuss Nvidia’s second quarter earnings, the update on its Blackwell chip, and what it means for the market and the stock moving forward.
Luria argues that its earnings bring something new into focus for the stock: “If the top line beats don’t flow to the bottom line, as they didn’t appear to in this quarter, that raises a new set of questions around whether pricing has changed, whether their input costs are higher, are they hiring and investing in a lot of new things? I think these are the new types of questions that are going to get start to get asked today in terms of whether Nvidia can translate the very fast revenue growth to profit, to leveraged profitability growth.”
In terms of the Blackwell chip, Luria argues that demand for the chip is too strong and many large-cap tech companies are still building out their AI infrastructure and will need to “buy as many GPUs as they can this year.” He believes that this is also not something that their customers — Amazon (AMZN), Microsoft (MSFT), Alphabet (GOOG, GOOGL) — care about since they are “buying the most advanced chips they can get. And if it’s an H100, H200, or a Blackwell, that’s what they’ll buy from Nvidia.”
For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.
This post was written by Nicholas Jacobino
#cashnews #UnitedStates #newsfinace #finance #FollowsCashnews