Nvidia(US:NVDA)2025-06-02 15:44Summary of NVIDIA Corporation Conference Call Company Overview - Company: NVIDIA Corporation - Industry: Semiconductors & Semiconductor Capital Equipment / IT Hardware Key Financial Results - Q1 FY26 (April Quarter): - Revenue: $44 billion, exceeding estimates of $43 billion despite $2.5 billion in lost GPU shipments to China due to restrictions [1][15] - Gross Margin: 61%, down from a prior guidance of 71% due to $4.5 billion in inventory write-downs [1][15] - EPS: $0.81, below consensus of $0.93 [1][15] - Q2 FY26 (July Quarter) Guidance: - Expected Revenue: $45 billion, below consensus of $46 billion but better than internal expectations of $41-$43 billion [1][15] - Estimated Datacenter Revenue Growth: ~16% quarter-over-quarter, driven by strong customer spending on AI initiatives [1][15] Segment Performance - Datacenter Revenue: Grew ~10% quarter-over-quarter, with strong production ramp of the Blackwell platform [1][15] - Networking Revenue: Increased significantly by ~64% quarter-over-quarter, benefiting from NVLink switch content [1][15] - Gaming Revenue: Up ~48% quarter-over-quarter due to improved supply and RTX 50-series ramp [1][15] - Automotive Revenue: Slight decline of ~1% quarter-over-quarter [1][15] Production and Supply Chain - Blackwell Production: Progressing well, with expectations to ramp up Blackwell Ultra (GB300) by the end of the current quarter [1][15] - Supply Constraints: Demand for Blackwell continues to outstrip supply for several quarters, with production at 1000 NVL72 racks per week [1][15] Market Outlook - Long-term Growth: Anticipated strong growth through CY26, supported by new product launches and a robust ecosystem [1][15] - Investment Thesis: Solid demand in PC gaming and data center segments expected to drive revenue, despite challenges in PC OEM [9][10] Valuation and Price Target - Price Target: Maintained at $170 for December 2025, based on a 30-35x earnings multiple applied to projected earnings of $5.39 in CY26 [10][15] - Earnings Growth: Expected earnings CAGR of 30-35%+ over the next few years, driven by datacenter growth and new revenue streams [10][15] Additional Insights - Cash Flow: Generated $27.4 billion in cash flow from operations during the April quarter, with $53.7 billion in cash and equivalents at quarter-end [18] - Market Position: NVIDIA maintains a competitive edge with a strong lead in silicon, hardware, and software platforms [1][15] Conclusion - Overall Assessment: NVIDIA continues to execute effectively across all segments, with strong growth prospects and a solid investment rating of Overweight [1][9][10]