Tom Nash
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NVIDIA ($NVDA) Blasts Through Earnings!
🕑 Added 2024-02-22 09:12:06 +0000 UTCThe entire market was on edge before Nvidia's earnings and the end result, much like a good Tarantino movie, did not disappoint. What a great report, once again by Jensen and team.
Bottom line: Nvidia is going crazy because people have finally figured out who is selling ALL the shovels in the AI gold rush.
The shovels ain't cheap, the H100 is $40,000 a pop! and the demand is going through the roof at the moment.
Detailed results:
1. Beat on revenue guide by 8% and estimates by 10%.
2. Beat earnings per share by 11%.
3. Year over year revenue growth of 265%! (datacenters 500%).
4. $26 billion in cash with only $10 billion of dent. (2.5 ratio!).
Sidenote: is much more than a data center infrastructure business. They have been quietly making big moves in industries like auto, healthcare, fintech and industrials which people don’t pay enough attention to.
Our DCF valuation: we reverse engineered the current share price to see how much expectations are built into it, and got 45% EBITDA growth for 5 years. That is a tall order but not impossible for Nvidia given the current market setup.
