NVDA

Nvdia Expects Fiscal 2028 Revenue to Grow 70%

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Image Source: TradingView By Brian Nelson, CFA Nvidia (NVDA) recently announced better-than-expected second quarter fiscal 2027 results, with revenue up 106% from a year ago, and Data Center revenue up 117%, to $89 billion, from a year ago. The consensus estimate for Data Center revenue was $85 billion. For the quarter, on a GAAP basis, its gross margin advanced 2.6 percentage points on a year-over-year basis, while operating income expanded 124% from the same period last year. GAAP net income jumped 126%, while diluted earnings per share catapulted 128% higher, to $2.46. CEO Jensen Huang had the following to say about the quarter: AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, … Read more

Nvidia Delivers Exceptional Fiscal First Quarter Results

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Image Source: TradingView By Brian Nelson, CFA Nvidia (NVDA) recently reported first-quarter fiscal 2027 results for the period ending April 26 that beat expectations on both the top and bottom lines. The company showcased record revenue of $81.6 billion (consensus was $79.2 billion), up 85% from the year-ago period, while Data Center revenue also hit a record, up 92% from last year’s quarter. GAAP and non-GAAP gross margins were 74.9% and 75.0%, respectively, while GAAP and non-GAAP earnings per diluted share were $2.39 and $1.87, respectively, the latter increasing 140% and edging out consensus by $0.12 per share. Free cash flow increased to $48.6 billion in the fiscal first quarter, growing from $26.1 billion in last year’s period. Management had … Read more

Nvidia Posts Blockbuster Fiscal 2026 Results

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Image Source: TradingView By Brian Nelson, CFA Nvidia (NVDA) recently announced fourth quarter fiscal 2026 results with revenue and non-GAAP earnings per share exceeding the respective consensus forecasts. The company posted record revenue for the fourth quarter of $68.1 billion, up 20% sequentially and up 73% from the year-ago period. Data Center revenue in the quarter was $62.3 billion, up 22% sequentially and up 75% from the same period a year ago. For the quarter, GAAP and non-GAAP gross margins were 75.0% and 75.2%, respectively, while GAAP and non-GAAP earnings per share were $1.76 and $1.62, respectively. Management had the following to say about the results: Computing demand is growing exponentially — the agentic AI inflection point has arrived. Grace … Read more

Nvidia Says “Blackwell Sales Are Off the Charts”

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Image Source: TradingView By Brian Nelson, CFA On November 19, tech behemoth Nvidia (NVDA) reported better than expected third quarter results with both revenue and non-GAAP earnings per share exceeding the consensus forecasts. The company posted record revenue of $57 billion, up 62% from the same quarter a year ago, and record Data Center revenue of $51.2 billion, up 66% from the same period a year ago. Its non-GAAP gross margin was 73.6%, while non-GAAP diluted earnings per share was $1.30. At the end of the quarter, Nvidia had $60.6 billion in cash and marketable securities and $8.5 billion in short- and long-term debt. Management had the following to say about the results: Blackwell sales are off the charts, and cloud … Read more

Thinking Slow: 3 Research Blind Spots That Changed the Investment World

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Dear members: — Daniel Kahneman in his text Thinking, Fast and Slow (1) divided the human psyche into two systems. The first system is instinctive and emotional, often set on autopilot, while the second system is slower and more logical, requiring a calculating conscious. Many of the maxims the investment world takes for granted today suffer from conclusions that are made rapidly, almost without thinking, driven by our first system, creating what I call research blind spots. — In World War II, Allied bombing raids were suffering from very high casualty rates. It was estimated that for those pilots that were flying at the beginning of the war, only about 10% survived, a terrible loss rate. Bombing was crucial to the Allied … Read more

Nvidia Shines in Second Quarter of Fiscal 2026

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Image Source: Nvidia By Brian Nelson, CFA On August 27, market darling Nvidia (NVDA) reported better than expected fiscal second quarter results with both revenue and non-GAAP earnings per share coming in ahead of the consensus forecast. Total revenue increased 56% from the year-ago period, to $46.74 billion (consensus was at $46.13 billion), with Data Center revenue of $41.1 billion advancing by a similar clip, the latter coming in slightly below the consensus estimate of $41.29 billion. In the quarter, GAAP and non-GAAP gross margins were 72.4% and 72.7%, respectively. GAAP and non-GAAP earnings per diluted share were $1.08 and $1.05, respectively. Consensus was at $1.01. Blackwell Data Center revenue increased 17% on a sequential basis, and there were no … Read more

Nvidia Reports Better Than Expected First Quarter Results

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Image: Nvidia’s shares are flirting with all-time highs. By Brian Nelson, CFA On May 28, Nvidia (NVDA) reported better than expected first-quarter fiscal 2026 results with revenue and non-GAAP earnings per share coming in higher than the consensus forecasts. Revenue increased 69% from the year-ago period thanks to strength in Data Center revenue, which was up 73% from a year ago. Gaming revenue was a record $3.8 billion, up 42% from a year ago. Professional Visualization revenue was up 19% from a year ago, while first quarter Automotive revenue was up 72% from last year. First-quarter non-GAAP gross margin was 71.3%, while first quarter non-GAAP diluted earnings per share was $0.96. Management had the following to say about the results: … Read more

3 Undervalued Stocks to Consider Buying Now

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Dear readers:   With the markets retracing most of their recent drawdown, we’re taking a victory lap as we didn’t panic, nor should have you. We highlighted our wait-and-see approach amidst the worst of the pullback, and we expect the Magnificent 7 (large cap growth and big cap tech) to continue to propel the markets higher, as they have done.   We’ve been busy rolling valuation models as we finetune our assumptions for a great number of companies under coverage. While doing so, we came across three undervalued stocks that are also included in the simulated newsletter portfolios. We think they’re prime for highlight.   The three stocks are UnitedHealth Group (UNH), Nvidia (NVDA) and Alphabet (GOOG). We spend a lot of time on discounted cash-flow valuation, … Read more

Magnificent 7 Earnings Reports Not Bad Thus Far

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By Brian Nelson, CFA   Shortly after Trump’s Liberation Day, where the President unveiled lofty tariffs on numerous countries, we released our wait-and-see outlook for the equity markets, which thus far has proven to be the right move, with the markets largely recovering from the depths reached in April. The S&P 500 (SPY), for example, is down just 3.3% year-to-date, excluding dividends.   A lot has happened since Liberation Day, including easing of tariffs to a 10% baseline for most, if not all, countries, with the key exception of China, where tariffs remain extremely elevated and prohibitive. Many countries are now reportedly negotiating trade agreements with the White House, and we expect China to be added to that list soon, even if … Read more

Trump Tariffs Higher than Expected; What We’re Doing

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By Brian Nelson, CFA The Trump tariff increases came in larger than what we were expecting, and it remains to be seen how they will flow through the global economy, as we monitor potential retaliatory tariffs from other countries. As it relates to the equity markets, we’re taking a wait and see approach at the moment as we monitor new policy changes related to trade, immigration, fiscal (tax), and regulations. In short, we’re not overreacting to the sell off as we won’t have a great handle on the tariff impact to companies for a few quarters when they report results post-tariff increases. That said, we’re expecting continued market volatility, with meaningful risk to the downside, before trade uncertainty alleviates in … Read more