Thoughts on $NVDA earnings
The results were as expected, and the stock price moved accordingly.
Specifically, the earnings exceeded expectations, achieving a double beat. As mentioned in the recent earnings forecast, this double beat is not new to NVDA investors. This is because the company has consistently exceeded expectations in the past seven quarters. However, whether it was not as much of an upside as expected, dissatisfaction with the guidance, or simply profit-taking due to news, the stock price declined for one of these reasons.
Taking a closer look. The datacenter business recorded a significant revenue increase of 112%. Nvidia's datacenter business continues to grow at a much faster pace than Nvidia's other business divisions. In other words, this means the company is losing diversity over time. Increasing reliance on a single business division (datacenter) is good as long as that division is performing well. However, if issues arise in that field, Nvidia would be unable to maintain its balance.
If there is one point of dissatisfaction, it would be the slowdown in growth. Looking at the year-on-year growth rates of the recent quarters...