$NVDA earnings

What does MASSIVE $NVDA beats across the board as CASH RICH companies DUMP cash into Nvidia chips.
✅People also likely blind to what NVDA just said on call: Ethernet end-to-end solutions for AI / for their data network. Currently they pretty much prefer Infiniband, but that requires recabling. Not ideal for existing biz. This ethernet-solution announce is HUGE. Once you have NVDA networking, EASY to sell GH200 CPUs on ARM or the platform you want with H100s. (Spectrum X)
✅CASH RICH enterprises like Dropbox, Microsoft, Adobe, ServiceNow, Snowflake, etc all using NVDA.
✅50% of data center beat came from CLOUD providers. Rest for other enterprise and customers. Businesses WINNING during high rates, NOT losing.
✅Small businesses and medium are getting hit as are households, by high rates, but that’s NOT $NVDA’s big customer.
✅They call themselves an “AI Foundry” thanks to hitting essentially all levels of AI: cabling, switching, software, CPU, GPU
✅Revenue beat 12.94%
✅ADJ EPS beat 19.47%
✅GAAP EPS beat 21.33%
✅Net Income beat 18.85%
✅AI wave “is propagating throughout the industry” < this is why it’s important to go Ethernet compatibility as soon as possible.
✅12-month product-launch cadence.

⚠️⚠️⚠️RISK FACTORS⚠️⚠️⚠️
🚨At some point, massive growth will slow.
🚨Revenue per chip will slow with increasing competition and supply.
🚨AI transition of server rebuild will end eventually. Maybe 5-10 years?
🚨Markets will start pricing in that slowdown at some point.
🚨For now, I assume $15 EPS by end of 2024, which works out to ~31x forward earnings. I expect EPS to grow 20-35% the next few years, which means at $500, $NVDA trades for around a 1 PEG. * PEG is price to earnings growth. @ 1 is value.

Growth stops, party is over.

So far, no growth stoppage. Instead, MORE GROWTH, not less. Rich enterprises are plowing in.

I’m about long $NVDA.