The Six Five team discusses NVIDIA Q3 Earnings.
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Transcript:
Patrick Moorhead: Yeah. So NVIDIA, we talked NVIDIA before, but listen, they crushed it. They beat EPS by almost 20%, they beat on revenue by over 13%, and their data center business is just an absolute beast. It’s tripled in the past 18 months. So super impressive. We saw increases in gaming too, which was I thought pretty fascinating. So check out my segment on Yahoo Finance. We talk about if the growth can continue, where the growth is going to come from, what’s going to happen in China, competition from AMD and Intel. And I got a question, does NVIDIA care about any of their other businesses? So check that out if you want the longer version of it.
Daniel Newman: What an amazing set of results, Pat. If you want to watch a great interview, watch Pat’s Yahoo Finance. If you want to watch an even greater interview. I’m just kidding. But I did spend 10 minutes on Bloomberg breaking this down in real time and same as you. Stunning set of results, but actually not surprising.
Patrick Moorhead: Yeah.
Daniel Newman: It actually pretty much was exactly I think what you and I both expected. The result to be huge growth, really positive outlook, strong guide, all about data center. Gaming actually did have a good comeback by the way.
Patrick Moorhead: Yep. It did.
Daniel Newman: It was not all that highly spoken of and actually I think there was some fairly decent results out of the omniverse business too, or provids, which they call it. Automotive. Sorry. Just kicked my computer. Automotive remains sort of, I don’t know, sideways down. I don’t know if they’re just kind of forgetting about that business. If they’ve just seeded that business. You know, Pat, my only worries, only worries are only worries is this growth, at some point they’re going to have the Zoom effect where you grow like this, you grow like this, you grow like this, and I think training growth is more linear.
The algorithmic growth, or whatever you want to call it, kind of that exponential growth is more of an inference. So the real question is is where’s NVIDIA going to be when inference starts to scale? What did one very important silicon designer tell me this week? Won’t claim any names, but basically there’s about 20 companies that are buying training at scale. They have about 20 customers that they’re focused on. So after that, then it’s all about inference, which can be done on a lot of different types of silicon and there’s a lot of different optionality and suddenly there’s more competition.
