Nvidia Stock Soars +25% On Blowout Guidance
NVDA guided +64% revenue growth
(vs est. of just 7%)
(vs est. of just 7%)
- Q1 revenue of $7.2B, +19% QoQ
- Record Data Center revenue of $4.28B
- Q2 revenue outlook of $11B
- Record Data Center revenue of $4.28B
- Q2 revenue outlook of $11B
Thoughts:
- Strong growth in company's main revenue-generating data center segment (>50% of company's revenue)
- Strong growth in company's main revenue-generating data center segment (>50% of company's revenue)
- But, revenue is declining in other segments (Gaming, Professional Visualization)
- The potential growth catalyst is its automotive segment, which has more than 2X revenue YoY.
- Good quarterly growth masks the poor YoY performance somewhat
Conclusion:
- NVDA is an A-tier business, but markets are pricing in huge growth.
- NVDA is an A-tier business, but markets are pricing in huge growth.
- A lot of things need to go well to justify its current valuation.
- I wouldn't bet against this company, but I won't be getting in at these prices either.
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Chillax guy : Oh! This is the guy who teaches option course at Tanjong Pagar area.