TOPSHOT - Nvidia CEO Jensen Huang delivers a keynote address at the Consumer Electronics Show (CES) in Las Vegas, Nevada on January 6, 2025. Gadgets, robots and vehicles imbued with artificial intelligence will once again vie for attention at the Consumer Electronics Show, as vendors behind the scenes will seek ways to deal with tariffs threatened by US President-elect Donald Trump. The annual Consumer Electronics Show (CES) opens formally in Las Vegas on January 7, 2025, but preceding days are packed with ...

NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks Jim Cramer recently put under a microscope. Cramer highlighted SoftBank’s sale of its stake in the company, as he stated: “I say own NVIDIA, don’t trade it. But we just learned that SoftBank, an outfit so rich I thought it could be meaningful to the AI buildout, had to sell its entire NVIDIA stake at big, it was a big profit to perhaps use that money for more AI investment. However, if you really believe the AI buildout will continue, then there could ...

Group 1: Large Cap Stocks Overview - NVIDIA, Tesla, and Invesco QQQ are highlighted as key Large Cap stocks to monitor today, based on their high trading volume [2] - Large Cap stocks are defined as companies with a market capitalization of approximately $10 billion or more, indicating established and typically more stable businesses [2] Group 2: NVIDIA (NVDA) - NVIDIA Corporation specializes in graphics, compute, and networking solutions, operating in multiple regions including the United States, Taiwan, China, and Hong Kong [3] - The company offers a range of products including GeForce GPUs for gaming, the GeForce NOW game streaming service, and solutions for enterprise workstation graphics [3] Group 3: Tesla (TSLA) - Tesla, Inc. is involved in the design, development, manufacturing, leasing, and selling of electric vehicles and energy generation and storage systems, with operations in the United States and China [4] - The company operates in two main segments: Automotive and Energy Generation and Storage, providing electric vehicles and various related services [4] Group 4: Invesco QQQ (QQQ) - PowerShares QQQ Trust, Series 1 is a unit investment trust that issues Nasdaq-100 Index Tracking Stock, aiming to reflect the price and yield performance of the Nasdaq-100 Index [5] - The Trust allows investors to purchase units representing proportionate undivided interests in the portfolio of securities held, closely mirroring the component securities of the Nasdaq-100 Index [5]

Core Viewpoint - Nvidia reported strong second-quarter fiscal 2026 results, with revenues and earnings exceeding expectations, driven by robust growth across all end markets and lower operating expenses [2][3][18]. Financial Performance - Non-GAAP earnings per share for Q2 fiscal 2026 were $1.05, surpassing the Zacks Consensus Estimate by 5%, and reflecting a 54% year-over-year increase and a 30% sequential increase [2]. - Total revenues for Q2 fiscal 2026 reached $46.74 billion, marking a 56% year-over-year increase and a 6% sequential increase, beating the consensus mark by 1.3% [3]. - Non-GAAP gross margin was 72.7%, down 3 percentage points year over year but up 11.7 percentage points sequentially [12]. Segment Performance - The Graphics segment contributed 11.6% of total revenues, with revenues increasing 51% year over year to $5.41 billion, exceeding the consensus estimate of $4.75 billion [5]. - Compute & Networking segment represented 88.4% of total revenues, with revenues soaring 56% year over year to $41.33 billion, surpassing the consensus estimate of $40.49 billion [6]. - Data Center revenues, a key component of Compute & Networking, accounted for 87.9% of total revenues, increasing 56% year over year to $41.1 billion, driven by demand for Blackwell GPU computing platforms [7]. Market Insights - Gaming revenues rose 49% year over year to $4.29 billion, reflecting strong demand from gamers and AI enthusiasts, and exceeding the consensus estimate of $3.83 billion [8]. - Professional Visualization revenues increased 32% year over year to $601 million, surpassing the consensus estimate of $524.8 million [9]. - Automotive sales totaled $586 million, up 69% year over year, driven by the adoption of self-driving platforms, exceeding the consensus estimate of $573.4 million [10]. Cash Flow and Shareholder Returns - Operating cash flow for Q2 was $15.37 billion, with free cash flow of $13.45 billion [16]. - The company returned $244 million to shareholders through dividends and repurchased $9.72 billion in stock during the quarter [17]. - A new $60 billion share repurchase authorization was approved, increasing the total limit to $74.7 billion [17]. Guidance and Market Outlook - For Q3 fiscal 2026, Nvidia anticipates revenues of $54 billion (+/-2%) and a non-GAAP gross margin of 73.5% (+/-50 bps) [18]. - Recent estimates have trended upward, with a 5.54% shift in consensus estimates [19]. - Nvidia holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [22].

Core Thesis - NVIDIA Corporation is experiencing significant growth driven by AI GPU demand, with a bullish outlook supported by strong financial performance and market positioning [1][5]. Financial Performance - NVIDIA reported a record revenue of $46.7 billion, representing a 56% year-over-year increase and a 6% sequential rise, surpassing estimates by 2.7% [2]. - Earnings per share (EPS) reached $1.05, exceeding expectations by 5% [2]. - The Data Center segment was the primary growth driver, generating $41.1 billion in revenue, also up 56% [2]. - Automotive revenue increased by 69% to $586 million, while Gaming revenue rose by 49% to $4.3 billion [2]. - Networking revenue nearly doubled to $7.3 billion, with Spectrum X achieving over $10 billion in annualized revenue [2]. Geographic Performance - U.S. revenue surged 80% to $23.5 billion, accounting for over half of total sales, while revenue from China declined by 25% to $2.8 billion due to restrictions [3]. - Taiwan and other international markets showed solid growth, indicating broad-based demand [3]. Margins and Shareholder Returns - GAAP gross margin was 72.4% and operating margin was 60.8%, both showing a modest year-over-year contraction due to rising costs [3]. - Free cash flow margin decreased to 28.8% [3]. - Shareholder returns were robust, with $10 billion returned and a new $60 billion repurchase authorization announced [3]. Future Outlook - Management guided Q3 revenue to $54 billion, well above consensus, driven by accelerating Blackwell deployments and expanding networking demand [4]. - Despite challenges from China restrictions and rising expenses, NVIDIA is positioned as a leader in AI infrastructure, with growth drivers in sovereign AI, robotics, and enterprise workloads [4]. Market Positioning - NVIDIA's stock has appreciated approximately 54% since a previous bullish thesis, reflecting strong Data Center growth and record earnings [5]. - The company maintains a durable competitive advantage, with an emphasis on Blackwell-driven momentum [5].

Core Viewpoint - NVIDIA Corporation reported mixed financial results for the first quarter of fiscal 2026, with earnings per share missing estimates but revenues showing significant year-over-year growth driven by strong performance across various segments [1][2]. Financial Performance - Non-GAAP earnings for the first quarter were 81 cents per share, missing the Zacks Consensus Estimate by 4.71%, but increased 32.8% year over year and declined 9% sequentially [1]. - Revenues reached $44.06 billion, up 69.2% year over year and 12% sequentially, surpassing the consensus estimate by 2.67% [2]. Segment Analysis - NVIDIA's revenues are categorized into two segments: Graphics and Compute & Networking [3]. - The Graphics segment contributed 10.2% of total revenues, with a year-over-year increase of 33% to $4.47 billion, although it fell short of estimates [4]. - Compute & Networking accounted for 89.8% of revenues, with a significant year-over-year growth of 75% to $39.6 billion, exceeding estimates [5]. Market Platform Performance - Data Center revenues, making up 88.8% of total revenues, increased 73.3% year over year to $39.1 billion, driven by demand for Blackwell GPU platforms [6]. - Gaming revenues rose 30.7% year over year to $3.76 billion, reflecting strong demand from various user groups [7]. - Professional Visualization revenues increased 19.2% year over year to $509 million, while Automotive sales grew 72.3% year over year to $567 million [8][9]. - OEM and Other revenues were up 42.3% year over year to $111 million [10]. Operating Metrics - Non-GAAP gross margin was 61%, down 17.9 percentage points year over year due to a $4.5 billion charge related to inventory issues [12]. - Non-GAAP operating expenses rose 43% year over year to $3.58 billion, but as a percentage of total revenues, they decreased to 8.1% [13]. - Non-GAAP operating income increased 29% year over year to $23.28 billion, with a decline in operating margin to 52.8% [14]. Balance Sheet and Cash Flow - As of April 27, 2025, NVIDIA had cash and marketable securities of $53.7 billion, up from $43.2 billion [14]. - Operating cash flow was $27.4 billion, significantly higher than the previous year [15]. - The company returned $244 million to shareholders through dividends and repurchased $14.1 billion in stocks [16]. Guidance - For the second quarter of fiscal 2026, NVIDIA anticipates revenues of $45 billion, slightly below the consensus estimate, with a projected non-GAAP gross margin of 72% [17].

Core Viewpoint - NVIDIA Corporation reported better-than-expected results for the fourth quarter of fiscal 2025, with shares trading 1% higher in pre-market [1] Financial Performance - Non-GAAP earnings were 89 cents per share, exceeding the Zacks Consensus Estimate by 5.95%, reflecting a 71% year-over-year increase and a 10% sequential increase [1] - Fiscal fourth-quarter revenues reached $39.33 billion, a 78% year-over-year increase and a 12% sequential increase, surpassing the consensus estimate of $37.72 billion [3] Segment Performance - The Graphics segment accounted for 8% of revenues, with a decline of 22% year over year and 19% sequentially to $3.3 billion, below the estimate of $4.82 billion [5] - Compute & Networking represented 92% of revenues, with a 101% year-over-year increase and a 16% sequential increase to $36.04 billion, exceeding the estimate of $32.68 billion [7] - Data Center revenues, making up 90.5% of total revenues, increased 93% year over year and 16% sequentially to $35.58 billion, driven by higher shipments of advanced GPU platforms [8][9] Operating Metrics - Non-GAAP gross margin was 73.5%, down 320 basis points year over year and 150 basis points sequentially, attributed to a shift to more complex systems [13] - Non-GAAP operating expenses rose 53% year over year and 11% sequentially to $3.38 billion, but as a percentage of total revenues, they decreased to 8.6% from 10% a year ago [14] - Non-GAAP operating income increased 73% year over year and 10% sequentially to $25.52 billion, with a non-GAAP operating margin of 64.9% [15] Cash Flow and Shareholder Returns - NVIDIA generated $16.6 billion in operating cash flow for the fourth quarter, up from $11.5 billion year over year but down from $17.6 billion sequentially [17] - The company returned $245 million to shareholders through dividends and repurchased $8.1 billion in stocks during the fourth quarter [18] Future Guidance - For Q1 2026, NVIDIA anticipates revenues of $43 billion (+/-2%), higher than the Zacks Consensus Estimate of $41.06 billion, with a projected non-GAAP gross margin of 71% (+/-50 bps) [20]