But not high enough, apparently. Shares boomed in the post-market. We’ll see if that can carry over into today’s action, but first, let’s check the tapes.
For the period ending June 30th, 2023, Nvidia posted:
- EPS of $2.70/sh on $13.51bn in sales vs. estimates for $2.09/sh on $11.22bn
- Net income grew 843% (not a typo) annually to $6.19bn while operating income grew even more to $6,8bn, a 1,263% gain
- Data center revenue grew 141% quarterly and 171% annually
- Gross margins improved by >25% to 71.2% on high-margin AI chip sales
- Revenue guidance for the next quarter of $16bn
After the firm’s last stellar earnings report earlier this year, the uptick in revenue estimates for this past quarter to $11bn was the primary driver of the stock’s ridiculous gains this year. Not only was that beat, but it was utterly trounced, giving all you apes that bought at $450+ hope to get in on the action.
The problem, similar to an issue faced in the past by companies like Tesla, is supply constraints, not demand. To demonstrate this, CFO Colette Kress made clear that “...we do not anticipate that additional export restrictions…would have an immediate material impact on our financial results.”
Translation: “Even if we can’t sell to China, we have more than enough demand that we could ever hope for at home.”