"Very Promising Time" for NVDA, Margins & Memory Questions Linger

**SPEAKER_1** (0:00)
Joining us to take a closer look at the numbers and the reaction, Alex Roy, CEO of SalesboxAI, and Dan O'Brien, President and Chief Operating Officer over at the Futurum Group. Great to have you both on. Alex, let's take a look at this. I mean, we've got $96.2 billion in revenue. We, EPS coming in at 222, both comfortably above expectations, above the whisper numbers here.
Did this prove that the AI infrastructure boom still has legs? Can we finally put it to bed because Nvidia has gotten a positive post-earnings reaction for only the second time in the last eight quarters?

**Alex Roy** (0:38)
Yeah, I mean, if you look at it, $100 billion is real. And we are very close to that number. It's expected to cross in the next quarter itself. So, yes, and it's very heartening to see the forecast, not just about what happened, but the next year.
They are saying that it's going to be 70% more, the revenue overall, which, you know, the estimates was like 45%, 44%. So very promising times ahead.

**SPEAKER_1** (1:07)
And Dan, I mean, the bigger surprise might have been what Alex just hinted at there was the guidance going forward that we're going to go north of $100 billion. It's 110.1, actually, is what they're projecting for Q3. What does that tell you about the strength of demand right now?

**Dan O'Brien** (1:24)
Hey, Marley, thanks for having me on. Yeah, I mean, I think yesterday was really a reset of the floor higher, right? Obviously, either short-term results were fantastic, but it was really that reset of the next fiscal year guide to 70% that was really the key news for me. And obviously, what Jensen said was real demand is closer to 100%.
So I think that floor has come up to 70%. I think reality that we'll actually see as the quarters play out is probably somewhere closer in between that 70% and 100%, you know, the expectation is that Nvidia kind of beats every quarter. And I think they've likely left some room as supply conditions improve to push that number a little bit higher over the course of the next couple of quarters.

**SPEAKER_1** (2:03)
And Alex, I want to talk about the reaction from the markets because I was covering this live on air yesterday. We initially saw the move to the downside. It wasn't a significant move, but it was red and it did hold.
What is it that you think changed between the earnings release and today that caused investors to decide that this was the report to embrace?

**Alex Roy** (2:25)
I mean, you know, they've obviously taken time to digest the information. You know, that's out there. And it's great to see that, you know, after they have done that, you know, the markets have responded positively as well as, you know, they find that those estimates are, you know, are accurate.

**SPEAKER_1** (2:44)
And Dan, how should investors be thinking about China? Because China is our wild card going in every time. Of course, we're ex-China again now. How should investors be thinking about China as it relates to Nvidia's business going forward? Is there a significant upside that should be being considered if we start to see some of these export restrictions? Is or is it a risk?

**Dan O'Brien** (3:08)
I think it's really being fully discounted. I mean, I do think it's potential upside to results, but I don't think Nvidia will get, you know, a lot of credit for that upside, because I don't think it's ever going to be really viewed as durable as we're, you know, kind of going back and forth in the regulatory environment. I mean, I think the big change that, you know, investors really saw between the early print and kind of the post-colonies today was, I think initially there was a negative reaction to that margin guidance, you know, one point down coming from 75 to 74
I wasn't worried about that at all. I mean, you know, that's actually to me quite impressive during, you know, what they've said is really the fastest ramp they've ever had now with Rubin. I think investors also took a step back and said, you know, one point of margin at this scale, you know, it's $8 billion. So, you know, while they've sacrificed one point on the percentage basis, you know, they've added incremental $8 billion in kind of nominal real value. So, you know, I think there was a big digestion. I think the kind of forward margin guidance, you know, kind of the pass through of that memory pricing being a very reasonable explanation. And then, you know, like I said, the floor being reset higher, you know, is really kind of what I think the market's reacting to right now.