Summary of NVIDIA's Q2 report and conference call: Supply will be better next year
NVIDIA's second-quarter performance exceeded expectations, with revenue growing significantly due to strong demand from data centers. Third-quarter sales guidance is in line with analysts' expectations, but falls short of the market's most optimistic forecasts. There are design issues with Blackwell, requiring rework, but substantial sales revenue is expected in the fourth quarter. CEO Jensen Huang remains optimistic about the prospects of AI applications, believing that the opportunity to reshape global data centers is still ongoing, while anticipating supply improvements by 2025
- NVIDIA's performance in the second quarter once again stood out, with revenue significantly exceeding expectations driven by strong demand in the data center sector.
- NVIDIA's third-quarter sales guidance roughly met analysts' expectations, disappointing some of the most bullish investors to a certain extent.
- NVIDIA revealed externally that there are some issues in the Blackwell design, requiring NVIDIA to rework. However, it is expected to bring in billions of dollars in sales revenue in the fourth quarter.
- Analysts really hoped that NVIDIA could provide more details around the Blackwell production line, but their wishes were not fulfilled, leading to a drop in NVIDIA's stock price during the conference call.
- During the analyst conference call, CEO Jensen Huang remained optimistic about the prospects of artificial intelligence applications, believing that the company is just beginning to reshape the global data center landscape, which represents a trillion-dollar opportunity.
- In an interview, Jensen Huang mentioned that the supply will continue to improve quarter by quarter, and the outlook for 2025 will be better than this year