Nvidia: Showing Strength Modernizing Computing And Creating AI Factories

Summary:

  • Nvidia Corporation’s AI hardware demand surged post-ChatGPT, driving record revenues and operating income, showcasing their strength in modernizing computing and building AI factories despite architectural transitions.
  • Nvidia’s dominance is bolstered by the widespread adoption of their CUDA software, making competitors’ hardware less appealing despite potential price advantages.
  • CEO Huang emphasizes Nvidia’s role in the AI revolution, modernizing data centers and creating AI factories, predicting tremendous growth in AI-driven industries.
  • Despite risks of overvaluation akin to the dot-com era, Nvidia’s conservative guidance, robust financials, and founder-led management make it a compelling long-term investment.

Nvidia campus in Silicon Valley

Sundry Photography

Introduction

Per my August article, Nvidia Corporation (NASDAQ:NVDA) keeps breaking sales records while waiting for their Blackwell architecture. Since then, we’ve had the September 11 Goldman Sachs Communacopia Tech conference and

Fiscal

Quarter

FCF

FCF

Margin

SBC

Op. Inc.

Op. Inc.

Margin

Gross

Profit

Gross

Margin

Revenue

QoQ Rev.

Growth

YoY Rev.

Growth

1Q24

$2.6

37%

$0.7

$2.1

30%

$4.6

65%

$7.2

19%

-13%

2Q24

$6.0

45%

$0.8

$6.8

50%

$9.5

70%

$13.5

88%

101%

3Q24

$7.0

39%

$1.0

$10.4

57%

$13.4

74%

$18.1

34%

206%

4Q24

$11.2

51%

$1.0

$13.6

62%

$16.8

76%

$22.1

22%

265%

1Q25

$14.9

57%

$1.0

$16.9

65%

$20.4

78%

$26.0

18%

262%

2Q25

$13.5

45%

$1.2

$18.6

62%

$22.6

75%

$30.0

15%

122%

3Q25

$16.8

48%

$1.3

$21.9

62%

$26.2

75%

$35.1

17%

94%


Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA, AMZN, CRM, GOOG, GOOGL, META, MSFT, TSLA, TSM, VOO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


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