Full review of the best NVDA earnings report we've seen in recent quarters

So first of all, it was really an amazing quarter, one of the best we have seen from NVDA in recent memory to be honest.

Most did NOT have them doing 70% next FY. And on top of that 70%, they said they would do 100% if not for supply constraints. 

I think they will land above 70%. Note that this level of growth has them above 2029 estimates at the end of next year. So pretty much insane.

We have a reacceleration in revenue. Last quarter was +85% YoY, this quarter +102% YoY. Next quarter they are guiding $108 billion which would be 89% YoY. With a beat of \~4% again, you'd see revenue grow \~96% YoY. 

The data says that 8 of the last 8 NVDA prints, it has faded intraday from where it opened, whether that be a red open or a green open.

If there was an earnings report that was going to buck that trend, this would frankly be it.

**Key things I took away from the earnings, separated into topic. Some of these you may have caught, some of these you may have misse.d**

**Nvidia with one customer representing 16% of total revenue in Q2'27.**

https://preview.redd.it/qwjs3qyaiwlh1.png?width=1400&format=png&auto=webp&s=98a2e78e842065abf3e14ed4461a62fff8dd5bf5

Note that their overall revenue concentration seems to be going DOWN from years ago which is a good sign.

**Likely:**

Customer 1 = msft

Customer 2 = googl

**Revenue visibility throguh 2029+**

https://preview.redd.it/3zl6fzebiwlh1.png?width=1400&format=png&auto=webp&s=e48a186b341c848fe950972f61c8d7b9f01992c8

Jensen Huang: "We just have a lot greater visibility now upstream and downstream. It is the case that we never forecasted or never guided to a year in advance. Even though our demand is much greater than 70%, our supply allows us to confidently deliver 70%."

**NVDA on gross margins:**

"This quarter we decided we would rip the bandaid off, reset expectations about our gross margins. We have now absorbed the cost increases. We have also repriced our products in the marketplace. Based on that, our margins are going to come down from 75%, but it will be between 72% and 73% next year." 

**Memory their major expense: bullish for the memory ecosystem.**

https://preview.redd.it/j4u55ddciwlh1.png?width=1400&format=png&auto=webp&s=405ab7301a6b8b6253a65d9c71c639d4879ccd85

"we are experiencing extreme pricing conditions in memory. The magnitude of the price increase has exceeded our prior expectations and are headed even higher into next year."

**On the scope for growth in compute:**

Jensen Huang: "The amount of compute necessary for an agent versus a human using it is probably 15 to 100 times, depending on the type of problem you're trying to solve. And so the amount of compute necessary is just extraordinary."

CPU revenue to more than double in FY28

**Bullsih commentary around data centers:**

Jensen Huang: "I heard the other day that return on investment capital is now less than a year. We're talking about $50 billion data centers."

Jensen Huang: "Everybody will have to be part of this computing shift, and everybody has to build infrastructure."

**Demand outstrips supply:**

Jensen Huang: "We have more supply than 70%, but about 70%. Our demand is much higher than that."

"we are seeing demand acceleration even at our scale. Customers forecasts point to our growth doubling next year. 

**Demand has upside optionality through AGI:**

Jensen Huang on demand if AI reaches AGI: "it is going to inflict further."

**Open models are not a threat to NVDA:**

Jensen Huang: "I would say nearly all open models run on Nvidia."

**On circular financing:**

"We recognize the scale of this support, and we know some will call this circular financing. We see it differently. We are going through a major computing platform shift. The creation of one of the most important technologies in human history. These are once in a generation companies, the technology leadership is proven and their customer traction and usage are skyrocketing."

**Bullish commentary for the bottleneck trade:**

"We will be shipping both Blackwell and Rubin systems in the future and are currently experiencing certain supply constraints." 

NVDA  has been in serious talks to acquire Hugging Face in a deal that could value the open-source AI platform at more than $13B.

No agreement has been reached and talks could still fall apart.

For more of my daily analysis, feel free to check out my sub r/tradingedge