Accessible version NVIDIA Corporation IR meeting: still a generation ahead of competition, Vera Rubin on schedule Maintain Rating: BUY | PO: 275.00 USD | Price: 183.78 USD Positive IR meeting, reiterate top pick, $275 PO We hosted NVDA IR Toshiya Hari for a virtual investor meeting. Key takeaways: 1) NVDA GPUs remain a full generation ahead of competition, given current available GPU-based LLMs were trained on old Hopper, not Blackwell (LLMs to be available in early 2026) which is 10x-15x better gen-over-ge ...

Core Insights - Ford is facing significant competition in Europe, particularly from Chinese automakers, and is committed to remaining competitive in the market [1][3] - The partnership with Renault aims to introduce two affordable Ford-branded electric vehicles in Europe by 2028, with Ford leading the design and Renault handling assembly [2][3] - This collaboration is part of Ford's broader strategy to enhance agility and cost efficiency in response to the influx of cheaper vehicles from competitors like BYD and SAIC Motor [3][4] Company Strategy - Ford's CEO emphasized the importance of the European market as a critical battleground for the global transformation of the automotive industry [4] - The partnership with Renault is seen as a strategic move to innovate and invest more effectively in Europe [4] - Ford is committed to accelerating its operations in Europe to ensure a vibrant future in the region [4]

Financially, Nvidia is strong with $60.6 billion in cash and $22 billion in free cash flow at the end of the quarter. It also has a low debt-to-equity ratio of 0.06. NVDA stock still trades at 24.6x forward fiscal 2027 earnings, below its historical average. Analysts expect 56% earnings growth in fiscal 2026 and 59% growth in fiscal 2027, indicating that Nvidia is a powerhouse with a multi-year runway powered by accelerated computing, generative AI, and agentic AI.Perhaps most importantly, Nvidia shows no s ...

Financial Data and Key Metrics Changes - NVIDIA reported revenue of $57 billion for Q3, representing a 62% year-over-year increase and a record sequential growth of $10 billion, or 22% [4] - GAAP gross margins were 73.4%, and non-GAAP gross margins were 73.6%, exceeding expectations [21] - Total revenue for Q4 is expected to be $65 billion, implying a 14% sequential growth [22] Business Line Data and Key Metrics Changes - Data center revenue reached a record $51 billion, up 66% year-over-year, with compute growing 56% driven by the GB300 ramp [5] - Networking revenue surged to $8.2 billion, up 162% year-over-year, with significant contributions from NVLink, InfiniBand, and Spectrum X Ethernet [14] - Gaming revenue was $4.3 billion, up 30% year-over-year, driven by strong demand for Blackwell [20] - Professional visualization revenue reached $760 million, up 56% year-over-year, attributed to the DGX Spark [20] - Automotive revenue increased to $592 million, up 32% year-over-year, primarily from self-driving solutions [20] Market Data and Key Metrics Changes - Analyst expectations for top cloud service providers' capital expenditures in 2026 have risen to approximately $600 billion, over $200 billion higher than at the start of the year [6] - The demand for AI infrastructure continues to exceed expectations, with NVIDIA's GPU-installed base fully utilized [4][5] Company Strategy and Development Direction - NVIDIA aims to capture a significant share of the estimated $3 trillion-$4 trillion annual AI infrastructure build by the end of the decade [4] - The company is focused on three platform shifts: from CPU to GPU computing, the rise of generative AI, and the emergence of agentic AI systems [24][25] - NVIDIA is committed to maintaining its leadership in AI computing and is actively engaging with U.S. and Chinese governments to navigate geopolitical challenges [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the $500 billion revenue forecast from Blackwell and Rubin by the end of calendar year 2026, with potential for additional orders [28] - The company is optimistic about the future, citing strong demand across various markets and the ongoing transition to accelerated computing and generative AI [6][24] - Management acknowledged challenges in the supply chain but emphasized their strong planning and partnerships to mitigate risks [52] Other Important Information - NVIDIA's partnerships with major companies like OpenAI and Anthropic are aimed at optimizing AI models for CUDA and expanding the ecosystem [18][43] - The company is preparing for significant growth, with inventory increasing by 32% quarter-over-quarter [21] Q&A Session Summary Question: Update on $500 billion revenue forecast for Blackwell and Rubin - Management confirmed they are on track for the $500 billion forecast and noted potential for additional orders beyond this figure [28] Question: Supply catching up with demand in the next 12-18 months - Management expressed confidence in their supply chain planning and noted that all applications are growing, which is driving demand for NVIDIA GPUs [30][31] Question: Assumptions on NVIDIA content per gigawatt in the $500 billion number - Management indicated that the content per gigawatt has increased with each generation, with Blackwell estimated at around $30 billion [34] Question: Role of AI ASICs or dedicated XPUs in architecture buildouts - Management emphasized that NVIDIA's architecture is uniquely positioned to handle the complexity of modern AI workloads, making GPUs the preferred choice [58]

Core Insights - NVIDIA Corporation (NVDA) is expected to report strong second-quarter fiscal 2026 earnings on August 27, driven by high demand for AI infrastructure and generative AI tools [1][9] - The global generative AI market is projected to grow significantly, reaching $967.65 billion by 2032, with a CAGR of 39.6%, contributing to NVIDIA's robust performance [4] AI Demand and Market Growth - Generative AI is transforming business operations, leading to increased demand for computing power, with NVIDIA's hardware being central to many AI applications [3][5] - NVIDIA's chips are utilized across various sectors, including healthcare, automotive, and cybersecurity, enhancing the importance of its products as more businesses adopt AI tools [5] Datacenter Business Performance - The datacenter segment has been a key growth driver for NVIDIA, with a 73% year-over-year increase in Q1 fiscal 2025, reaching $39.1 billion [6] - Projections for Q2 indicate datacenter revenues could reach $40.19 billion, reflecting a 53% year-over-year increase and a 3% sequential rise, fueled by heavy investments in AI [7][12] Financial Expectations for Q2 - NVIDIA anticipates Q2 fiscal 2026 revenues of $45 billion (+/-2%), a significant increase from previous years, with the Zacks Consensus Estimate at $46.14 billion, indicating a 53.6% year-over-year growth [9][12] - The consensus estimate for Q2 EPS is $1.00, suggesting a 47% year-over-year surge, with a history of surpassing earnings estimates [10]

Core Viewpoint - NVIDIA Corporation is expected to report strong earnings for the first quarter of fiscal 2026, driven by high demand for AI computing and infrastructure across various industries [1][9]. Group 1: Financial Performance - NVIDIA's datacenter segment has been a significant contributor to its growth, with a 93% year-over-year increase in the fourth quarter of fiscal 2025, resulting in revenues of $35.58 billion, which is a 16% increase from the previous quarter [3]. - Projections for the first-quarter datacenter revenues are estimated to reach $38.5 billion, indicating a 71% year-over-year increase and an 8% sequential rise [4]. - The company expects first-quarter fiscal 2026 revenues to be around $43 billion (+/-2%), representing a 64% increase from the same period last year [9]. Group 2: Market Demand and Trends - The global generative AI market is anticipated to grow rapidly, reaching $967.65 billion by 2032, with a compound annual growth rate (CAGR) of 39.6%, which supports NVIDIA's strong performance [7]. - Generative AI is significantly increasing the demand for computing power, with applications in various sectors such as healthcare, automotive, and manufacturing [6][8]. Group 3: Product and Technology - NVIDIA's latest chip designs, including Hopper, Ampere, and Blackwell, are integral to many AI applications, facilitating tasks from training large models to real-time responses [5]. - Major tech companies like Microsoft, Amazon, and Google are utilizing NVIDIA chips in their AI products, sustaining high demand for NVIDIA's technology [5].