Nvidia Rises After Solid Earnings, Reversing Margin Concerns As Company Guides To 70% 2028 Revenue Growth

Update (5:10pm): NVDA stock is very volatile, and after sliding 3% at first on solid earnings but weak margin guidance, the stock has since recovered and is up over 5% as the earnings call begins, on the following comments from Jensen Huang:

• *NVIDIA CFO SAYS SEEING DEMAND ACCELERATION EVEN AT OUR SCALE
• *NVIDIA CFO SAYS REVENUE TO GROW ABOUT 70% IN FISCAL 2028
• *NVIDIA CFO SAYS SEEING DEMAND ACCELERATION EVEN AT OUR SCALE

As Bloomberg notes, Amazon’s commitment to use a lot more Nvidia products and a strong prediction for growth in revenue of about 70%, well above whispers of about 40-50%, next year has shoved aside the naysayers. The 2028 guidance, which came unexpectedly and was intended precisely the spark a buying spree in the stock, did just that, and has pushed the shares about 5% after hours. 

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Earlier:

In our preview of NVDA earnings we said that "Nvidia will beat FQ2 (July) revenue estimates by approximately $3-4 billion, with revenue potentially reaching $94-95 bn. The stock, however, will not respond to the beat.... recall revenue guidance has beaten Street consensus by an average of 4% over the past four quarters, while the stock has traded down 3%/5% on average over the subsequent 7/30 days." It seems we were we right: despite blowout beats on the top and bottom line, the stock is sliding after hours, in what will be the 6th of the past 7 earnings reports the stock has tumbled despite beating bigly.  READ MORE AT SOURCE »