[Financial Results Preview] An opportunity for NVIDIA, the AI emperor, to make a big purchase before financial results on the 29th?!
● $NVIDIA (NVDA.US)$ IsAfter the end of trading hours next Thursdayupon(8/29 at 6 a.m. Japan time)We plan to announce financial results for FY2025 Q2.
● Before NVIDIA's financial results are announced, $Microsoft (MSFT.US)$ 、 $Amazon (AMZN.US)$ 、 $Alphabet-C (GOOG.US)$ 、 $Meta Platforms (META.US)$ Big Tech, which accounts for 40% or more of NVIDIA's sales, etc.Highlight commitment to investing in AIThe financial results to be made have been announced.
● NVIDIA's earnings have been growing strongly for 3 consecutive quarters. The company's total sales for the previous quarter reached a record high of 26 billion dollars, an increase of 262% over the same period last year. Revenue from the data center business recorded a record high of 22.6 billion dollars, up 23% from the previous fiscal year and 427% from the same period last year.
● According to MOOMOO, the market is NVIDIA FY2025 Q2Sales increased 112.03% from the same period last year to $28.639 billion、EPS is expected to increase 141.49% from the same period last year to $0.60It has been done (US-GAAP).
● Before NVIDIA's financial results are announced, $Microsoft (MSFT.US)$ 、 $Amazon (AMZN.US)$ 、 $Alphabet-C (GOOG.US)$ 、 $Meta Platforms (META.US)$ Big Tech, which accounts for 40% or more of NVIDIA's sales, etc.Highlight commitment to investing in AIThe financial results to be made have been announced.
● NVIDIA's earnings have been growing strongly for 3 consecutive quarters. The company's total sales for the previous quarter reached a record high of 26 billion dollars, an increase of 262% over the same period last year. Revenue from the data center business recorded a record high of 22.6 billion dollars, up 23% from the previous fiscal year and 427% from the same period last year.
● According to MOOMOO, the market is NVIDIA FY2025 Q2Sales increased 112.03% from the same period last year to $28.639 billion、EPS is expected to increase 141.49% from the same period last year to $0.60It has been done (US-GAAP).
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AI hardware and chip-related companies $NASDAQ 100 Index (.NDX.US)$ It is leading the backlash from the August low, and NVIDIA rose close to 30% and came close to a 6.1% difference from the highest price in history at the closing price. Of the same industry $Micron Technology (MU.US)$、 $Marvell Technology (MRVL.US)$ 、 $Super Micro Computer (SMCI.US)$ 、 $Broadcom (AVGO.US)$ 、 $Advanced Micro Devices (AMD.US)$ 、 $Arm Holdings (ARM.US)$ They all played a leading role in the backlash.
While questions swirl about the US Federal Reserve (Fed) policy, economic situation, and the US presidential election,At least one thing is clear on Wall Street: investing in artificial intelligence (AI) remains a top priorityIt means that it is. Companies have invested tens of billions of dollars in strengthening AI infrastructure and services, and NVIDIA in particular is benefiting from this. AI demand will be further clarified in NVIDIA's financial results next week, and it has been pointed out that there is a possibility that stock prices will hit record highs.
“The development of AI infrastructure has just begun, and the outlook is very good in terms of growth that can be expected over the next few years,” Erik Swords, lead portfolio manager at Voya Investment Management, pointed out. Rather than saying that this theme is nearing its end, “We haven't come out of the dugout almost yet. So,There will be volatility in the short term, but there are no concerns about trading AI hardware stocks in the medium to long term” he said.
Expectations are growing for the company, which has leadership in several major growth markets, ahead of NVIDIA's financial results for the second quarter. Over the past year, demand for NVIDIA has increased rapidly in various end markets, mainly in data centers and game markets. In data centers, the adoption of artificial intelligence (AI) and machine learning is promoting steady sales of NVIDIA's specialized graphics processing units (GPUs) and networking products. Also, as many companies migrate their operations to the cloud, the company is also benefiting.
What are NVIDIA's financial results $Microsoft (MSFT.US)$ 、 $Amazon (AMZN.US)$ 、 $Alphabet-C (GOOG.US)$ 、 $Meta Platforms (META.US)$ It will be announced a few weeks after Big Tech's financial results.These companies account for more than 40% of NVIDIA's revenue, underscoring their intention to continue investing in AI. $Taiwan Semiconductor (TSM.US)$ Strong monthly sales also similarly indicate the steadiness of AI demand.
$Alphabet-C (GOOG.US)$ Ya $Meta Platforms (META.US)$ CEOs of major technology companies, including, have stated that they would rather spend excessively in order to avoid the risk of underinvestment in AI.Considering the abundant financial power these companies have, there is a high possibility that AI spending will continue even if the economic environment deterioratesIt suggests.
Bryant Vancronkite, senior portfolio manager at Allspring Global Investments, has stated, “There are no resource limits for a company this large, and if they feel that their superiority is threatened, they can continue investing in AI for years.”
It is predicted that the construction of AI infrastructure will be huge and long-term. According to Needham, citing a conversation with the CEO of a generative AI infrastructure company, it is said that there is a possibility that investment in data center infrastructure necessary to support GenAI will reach 6 trillion dollars.
Goldman Sachs analysts Toshiya Hari and Anmol Makkar stated in recent reports that NVIDIA will continue to maintain a strong position in the AI and accelerated computing fields, supported by strong demand from large cloud service providers and enterprise customers.Continue to maintain “buy” ratingsIt points out that it is. According to the report, although delays in shipment of Blackwell series GPUs have caused fluctuations in the basic situation, there is still confidence in NVIDIA's profitability based on official statements and data related to the supply chain, and it is predicted that profit per share in 2025 will reach 4.16 dollars, and it is pointed out that it exceeds general market expectations by 11%.
Nevertheless, there is evidence that this trend has not been fully appreciated in the market. Solita Marceli, the American region's chief investment officer at UBS Global Wealth Management, estimates that capital investment by major technology companies may increase by up to 25% in 2025, which will greatly exceed the 10-15% growth forecast by consensus.
This is “very positive for AI promotion companies, especially in the semiconductor field,” he wrote.
There is a possibility that the current surge in GPU demand will ease as the initial training phase of AI large-scale language models decelerates. After model training is completed, there is a possibility that the usage phase of these models will shift to low power requirements or processing on devices in some cases, and there is a possibility that demand growth for GPUs will be suppressed.
Also, some analysts have pointed out that investment in AI by large NVIDIA customers has not yet led to significant profit growth or significant improvements in efficiency. Although the impact of this point on the enthusiasm for AI investment by large NVIDIA customers is thought to be small, it is still attracting attention as a risk. Furthermore, competition is intensifying. Companies like AMD are investing heavily to catch up because competition in this field is intense.
— MooMoo News Zeber
Source: Moomoo, Bloomberg, Forbes
This article uses automatic translation for some of its parts
Source: Moomoo, Bloomberg, Forbes
This article uses automatic translation for some of its parts
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