Nvidia, quotes that investors should keep in mind - Lee
August 29, 2024 23:35 JST (excerpt)
There's a saying in Silicon Valley: Hardware is difficult and costly, and this applies to nvidia as well. Even this exceptional company, with its outstanding skills in manufacturing cutting-edge chips for artificial intelligence (AI), and a market capitalization of $3 trillion, faces challenges.
As far as I know, Wall Street doesn't have such a saying, especially when it comes to transformative technologies. Therefore, when Nvidia acknowledged that there were some issues with the production of the next-generation AI semiconductor called 'Blackwell' on the 28th, traders were shocked, causing the stock price to temporarily fall by 8.4% in after-hours trading. The fact that the revenue for the 2nd quarter (May-July) increased by only a modest 122% compared to the previous year also affected the stock price. Although the revenue forecast for the 3rd quarter (August-October) exceeded analysts' expectations, it still fell short. It was as if CEO Jensen Huang hadn't put in any effort at all.
Seems a bit silly. The Bloomberg Intelligence analyst's observation that Nvidia is facing the market's 'unsustainable high expectations' is correct. The delay in Blackwell is temporary, and thanks to the strong demand that will continue for several months, the company's overall margin is still quite large.
There's a saying in Silicon Valley: Hardware is difficult and costly, and this applies to nvidia as well. Even this exceptional company, with its outstanding skills in manufacturing cutting-edge chips for artificial intelligence (AI), and a market capitalization of $3 trillion, faces challenges.
As far as I know, Wall Street doesn't have such a saying, especially when it comes to transformative technologies. Therefore, when Nvidia acknowledged that there were some issues with the production of the next-generation AI semiconductor called 'Blackwell' on the 28th, traders were shocked, causing the stock price to temporarily fall by 8.4% in after-hours trading. The fact that the revenue for the 2nd quarter (May-July) increased by only a modest 122% compared to the previous year also affected the stock price. Although the revenue forecast for the 3rd quarter (August-October) exceeded analysts' expectations, it still fell short. It was as if CEO Jensen Huang hadn't put in any effort at all.
Seems a bit silly. The Bloomberg Intelligence analyst's observation that Nvidia is facing the market's 'unsustainable high expectations' is correct. The delay in Blackwell is temporary, and thanks to the strong demand that will continue for several months, the company's overall margin is still quite large.
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