Rui Ming commented on a stock · May 26, 2023 15:45

Nvidia Stock Soars +25% On Blowout Guidance

NVDA guided +64% revenue growth
(vs est. of just 7%)

- Q1 revenue of $7.2B, +19% QoQ
- Record Data Center revenue of $4.28B
- Q2 revenue outlook of $11B

Thoughts:
- Strong growth in company's main revenue-generating data center segment (>50% of company's revenue)

- But, revenue is declining in other segments (Gaming, Professional Visualization)

- The potential growth catalyst is its automotive segment, which has more than 2X revenue YoY.

- Good quarterly growth masks the poor YoY performance somewhat

Conclusion:
- NVDA is an A-tier business, but markets are pricing in huge growth.

- A lot of things need to go well to justify its current valuation.

- I wouldn't bet against this company, but I won't be getting in at these prices either.

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