Nvidia revenue surges +94% YoY to $35.08b, beating expectations. Most growth is to EV makers. If sales to EV makers keep rising and growth is seen in healthcare sales expect Nvidia share to march up

-        Nvidia’s quarterly revenue rose 94% year-on-year to US$35.08 billion, beating the US$33.25 billion expected. And it sees revenue rising to US$37.5 billion next quarter, plus or minus 2%. That’s about in line with what Wall Street was looking for (US$37.1 billion).

-        Sales revenue growth was highest in automotives (as in sales to EV companies), with revenue surging 72%. And given EV demand is now expected to take off in the US, you might expect this to continue. Data centre division revenue – which largely comes from sales to the 'magnificent seven' companies (such as Microsoft, Meta, Amazon and Tesla) – rose to US$30.8 billion (up from US$14.5 billion prior and beating the US$29.14 billion Bloomberg forecast).

But we need to remember there is no other company in the world that’s growing its income and profits at this magnitude, and has 40% of its clients being big tech companies (Meta, Microsoft, Amazon Telsa), and it’s continuing to roll out new products to them (with shipments starting next quarter).

-        The market was bracing for an 8% swing of almost US$300 billion in value in Nvidia. However, after hours, Nvidia shares fell about 1% to US$144.21. Nvidia had a high earnings bar to jump over to please the market. It did jump over it and proved it can keep jumping over hurdles ahead. We just need to see the breadth of its revenue growth in the EV sector rise and revenue growth extend to the healthcare sector over the coming quarter. If that happens, Nvidia shares will probably be much higher in a year.

-        But tonight, let’s see what traders really think of Nvidia’s results. If we do see a sell-off it will probably be very short-lived, with investors pouncing on any dip as it seems Nvidia’s long-term bullish case is intact. And perhaps it’s just warming up.