Dividend Stocks

NVIDIA’s Earnings Are In: Were They a Jackpot or a Bust?

Imagine you’re sitting at a poker table. The tension is palpable as you consider your next move. The outcome from the next hand will be the result of a blend of strategy, psychology and chance.

This what many investors experience every earnings season, too. After careful planning and execution, earnings season is the time when companies finally put their cards on the table for all the world to see. Companies that top estimates and provide positive forward-looking guidance tend to rake in the chips, while companies that miss and/or offer a weak outlook see their stocks fold.

This week, the stakes couldn’t have been higher for the company that has been running the table for quite a while now: NVIDIA Corporation (NVDA).

Now, much of NVIDIA’s run lately of better-than-expected sales, earnings and guidance has been thanks to its older artificial intelligence chips, namely the Hopper H100 graphic processing unit (GPU). However, the company is now making the transition to its new AI chip, the Blackwell GB200 GPU. Unfortunately, there have been reports that the new chip could be delayed by at least three months.

As a result, Wall Street was eager for the company to release guidance on the delivery of its Blackwell GB200 GPUs and order backlog. In fact, I predicted that this would likely be even more important than the company’s actual second-quarter sales and earnings results.

So, with the rumors spreading and tensions mounting, the question on folk’s minds is… Can NVIDIA deliver another jackpot performance?

In last Friday’s Market 360, I previewed what analysts were expecting from the company’s latest earnings report. Well, NVIDIA just showed their latest hand yesterday after the market closed. So, in today’s Market 360, I’ll deal out the details of NVIDIA’s latest financial results, discuss whether it was another winning hand or just a bust… and if it’s still a good buy.

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