Nvidia(US:NVDA)2025-11-20 02:17Summary of Nvidia Corp. (NVDA) Conference Call Company Overview - Company: Nvidia Corp. (NVDA) - Industry: Semiconductors, specifically focusing on AI and data center solutions Key Financial Results - Revenue: Reported revenue of $57.0 billion, exceeding Goldman Sachs (GS) estimate of $55.6 billion and Street estimate of $55.4 billion [2] - Gross Margin: 73.6%, slightly below GS at 73.5% and above Street at 73.7% [2] - Operating Margin: 66.2%, just above GS at 65.9% and Street at 66.0% [2] - Operating EPS: $1.30, above GS at $1.28 and Street at $1.26 [2] - Data Center Revenue: $51.2 billion, significantly above GS at $49.4 billion and Street at $49.7 billion [2] - Gaming Revenue: $4.3 billion, below GS at $4.7 billion but above Street at $4.5 billion [2] - Professional Visualization Revenue: $760 million, far exceeding GS at $643 million and Street at $619 million [2] - Automotive Revenue: $592 million, below GS at $620 million and Street at $633 million [2] Guidance and Future Outlook - 4Q Revenue Guidance: Midpoint guidance of $65.0 billion, well above GS at $63.2 billion and Street at $62.4 billion [3] - Gross Margin Guidance: Non-GAAP gross margin expected at 75.0%, above GS at 74.4% and Street at 74.5% [3] - Operating Expenses: Guided to $5.0 billion, with operating income and expenses expected to remain stable [3] - Implied Non-GAAP EPS: Expected at $1.50, above GS at $1.49 and Street at $1.44 [3] Market Sentiment and Stock Performance - Stock Performance: Anticipated to trade higher following strong quarterly results and guidance, despite a ~6% pullback prior to the earnings report [1] - Investor Focus Areas: Key areas of interest include details on the $500 billion Datacenter revenue forecast, visibility into OpenAI deployments, and the timing of the Rubin product launch in 2026 [1] Industry Implications - AI Spending Environment: The guidance for the Data Center segment indicates a robust AI spending environment, positively impacting digital semiconductor companies such as Broadcom and AMD, and to a lesser extent, Marvell and ARM [4] Price Target and Risks - Price Target: 12-month price target set at $240, based on a 35X P/E multiple applied to a normalized EPS estimate of $6.85 [4] - Key Risks: Potential risks include a slowdown in AI infrastructure spending, increased competitive intensity, margin erosion, and supply constraints [7] Conclusion - Nvidia Corp. has demonstrated strong financial performance with significant revenue growth, particularly in the Data Center segment, and has provided optimistic guidance for the upcoming quarter. The company is well-positioned in the AI and semiconductor markets, although it faces potential risks from competition and market dynamics.