Good morning, investors. I’ve been bearish on Nvidia since late 2024.
But after its latest quarter, that thesis deserves a fresh look.
Let’s dive in ↓
The Nvidia Case
Nvidia generated +$1 billion in revenue every day in the second quarter.
Nvidia’s latest quarter snapshot:
Revenue: $96.2B, +106% YoY
Data Center: $89.0B, +117%
Operating income: $63.7B, +124%
EPS: $2.46, +128%
Gross margin: 75%
Q3 guidance: $108B
If Nvidia hits Q3 guidance, quarterly revenue will have grown roughly 1,730% in four years.
And that guidance assumes zero China data-center compute revenue.
That is much stronger than I expected.
But there is still one thing that deeply worries me.