[Financial Summary] NVIDIA's stock price is now 1000 dollars! High growth continues with Blackwell, the strongest chip in the world, and dividends are also good materials

The following good news boosted stock prices.

Of the above, 1) and 2) are generally expected in the market, and this is not a big surprise.3) to 5) means that the company brilliantly dismissed the concerns of some analysts. The stock price reaction when the split was conveyed (overtime trading) was limited, probably because there were analysts who pointed out the possibility of the stock split beforehand.What gave impetus to stock pricesAt the financial results presentationAfter 3) to 5) became clear and CEO Jenson Huang showed a bullish outlookIt was.It was shown that NVIDIA's high growth is expected to continueit's for.

Note, it can be said that it is an advantage that the split makes it easier to buy stocks. As summarized at the end of the report, past experience shows that stock prices have generally risen after the split.

Earnings Highlights
● 1Q (fiscal year ending February to April) results: higher than expected
Sales: $26.04 billion, 3.6 times the same period last year; market forecast is $24.69 billion
Adjusted EPS (earnings per share): $6.12, 5.6 times the same period last year; market forecast is $5.65
●2Q Guidance: Expectations are higher
Sales: $28 billion ± 2%; market forecast is $26.82 billion

Sales: $22.6 billion, 5.3 times the same period last year, up 23% from the previous quarter, exceeding market expectations ($21.13 billion).

Check out management's comments on the data center division, which holds the key to future results
⇒ The outlook is strong
●Leading cloud providersThe fact that NVIDIA is deploying and expanding its AI infrastructure on a large scale is driving steady growth in the data center sector. Major cloud providersThe data center division accounts for 40% and a half of revenueThat's it.

●Over the past 4 quarters,It is estimated that inference (*) accounted for approximately 40% of data center revenueDoing it. Both training and reasoning have increased significantly.

●We partnered with over 100 customers this quarterThen, they built an AI factory equipped with hundreds to tens of thousands of GPUs. Some companies are equipped with 100,000 GPUs.

Dispelling the concerns of the underdogs on Wall Street
Before financial results were announced, some analysts were concerned about the following 2 points against NVIDIA.

1) The possibility that customers will refrain from purchasing H200 with the introduction of BlackwellThere is. As a result, there is a possibility that high growth will stop for the next six months or so.
(There was an observation article stating that AWS (Amazon Cloud Service) stopped planning to use Grace Hopper because it uses NVIDIA's Grace Blackwell)
2) Major loud companies, which are major customers, are promoting GPUs developed in-house

CEO Hwang commented on this as follows, dispelling analysts' concerns.

1) Demand for Hopper (installed on H100 and H200) is expected to increase throughout this quarterI'm doing it. Currently, they are migrating from H100 to H200 and then moving to Blackwell,Demand (for Hopper) is expected to exceed supply for a whileDoing it.

The reason is that customers want to implement (Hopper's) as soon as possible in order to save costs and increase profits.Time is of the utmost importance to our customersthat's it. In order to secure time to train for a 3-month project, it's all about starting training 3 months early (It suggests that it would be advantageous to introduce Hopper and do AI training as soon as possible rather than wait for Blackwell to ship）。

Blackwell is a platform, not a GPU, and this platform includes support for air cooling, liquid cooling, x86, and Grace. It is easy to transition from H100 to H200 and B100 (equipped with Blackwell). Blackwell systems are designed to be compatible andThe software that runs on Hopper works fine with Blackwell（Since it is compatible, it is suggested that it is also possible to migrate to Blackwell after introducing Hopper）。

2)Regarding CEO Hwang,NVIDIA's advantageIt was pointed out as follows.
●(Our) fast computing architectureThus, customers go from unstructured data processing for training preparation to structured data processing, data frame processing for training preparation, andCan handle every aspect of the pipeline, from training to inference。
●We are on-premise, cloud,It exists on computers of all sizes and shapes. Starting with NVIDIA is always the best choice.
●It is also related to the fact that we are building an AI factory. AI isn't just a chip issue; it's a system issue.Optimize chips and collaborate as a systemThen,Only by implementing software that operates as a system can the entire system be optimized（Highlight the strengths of NVIDIA's software. Cost performance was also mentioned, and the superiority of NVIDIA was emphasized）。

More comments from CEO Hwang
●Blackwell platformBy ourThe scope of provision has been greatly expandedDoing it. Since integration with CPUs and computing density has been drastically reduced, data centers can not only drastically reduce the cost of power supply due to liquid cooling, but also improve energy efficiency.
● Blackwell shipping schedule：Shipments will begin in Q2I plan to do it. Customer data centers (equipped with Blackwell) will be launched in the fourth quarter.
●Blackwell's revenue contribution：Blackwell's earnings will increase quite a bit this year。

Also, when NVIDIA announced Blackwell in March this year, it introduced Blackwell as “the strongest chip in the world.”

Positive reviews stand out from Wall Street
●Bloomberg Intelligence: “NVIDIA's 1Q sales and 2Q guidance surpassed consensus, indicating that demand for the company's data center AI chips continues to be strong. Dividends and share buybacks are likely to ease concerns about growth.”
●City (investment decision: buy, target stock price: 1,030 dollars): “While AI demand is strong, NVIDIA announced performance and guidance that exceeded expectations.”
●Wedbush (investment decision: outperform, target share price: $1,000): “The details of NVIDIA's financial results strengthened Wedbush's optimism. There are no signs that demand will stagnate, and we are confident that the upcoming data center product cycle will be a catalyst for new revenue in just a few quarters.”
●Truist Securities (investment decision: buy, target share price: $1,177): “Results have exceeded expectations. The data center is doing particularly well, and the outlook is bright.”

Note, at the beginning of the financial results presentationCEO HwangThe introductory speech was powerful. ”The next new industrial revolution has begun。Companies and countries partner with NVIDIAIt will shift from conventional data centers that rise to a scale of 1 trillion dollars with an installed base to accelerated computing, and produce AI, which is a new product,They are building new types of data centers and AI factories。」「AI has brought significant productivity improvements to almost all industries, increased corporate cost efficiency and energy efficiency, and expanded profit opportunities.」