Nvidia (NVDA) released its first quarter results, surpassing analysts’ estimates on both revenue and profitability. However, with Nvidia’s rapid growth trajectory, investors are questioning whether the company’s performance can be sustained. Synovus Trust Vice President and Senior Portfolio Manager Dan Morgan joins Catalysts to discuss his outlook on Nvidia.
Morgan acknowledges that there were concerns about a potential slowdown in Nvidia customers’ orders of the company’s existing AI chip offerings as new products were released. However, he notes that the company’s earnings report, coupled with upbeat second quarter revenue guidance, “gives me the indication that there is no slowdown in terms of order growth.”
Regarding the supply of the new GPU chips, Morgan states that he doesn’t anticipate a rollout until the fourth quarter. “I think right now they’re preparing and getting that supply chain ready to go so that they can meet that demand in the fourth quarter,” he adds.
For more Nvidia, Watch Yahoo Finance’s interview with CEO Jensen Huang.
For more expert insight and the latest market action, click here to watch this full episode of Catalysts.
This post was written by Angel Smith
Video Transcript
And video shares up over 2000% in the last five years.
When our next guest first got the stock in May 2020 it is just 70 bucks a share.
So this is a happy guest that we’ve got here joining us now to discuss and videos explosive growth story.
We got Dan Morgan.
He is no trust vice president and senior portfolio manager, Dan Congrats on what is obviously great trade for you getting in at $70 for this name.
I’m curious, what do you think the runway looks like from here?
Obviously, you’ve had a stellar growth story for in video thus far.
How do you think this could go?
Well, you know, you mentioned in the beginning of the hour here about all the concerns coming into this, uh this upcoming print especially related to some reports that came out uh that potentially said, you know, certain customers were uh not purchasing the Hopper Series chips.
They were gonna hold off into the Blackwell, which is the new GP U that was introduced back in March, that was most likely gonna come out in the fall.
But you know, you look at these numbers it’s not really indicative of that, right.
We had data center uh segment which was up 427%.
They did 22.6 billion, which is unbelievable number.
And then the guidance that they gave for this upcoming second quarter was consensus was at about 26.5 billion.
They guided at 28 billion plus or minus 2%.
So that gives me an indication that there is no slowdown in terms of order growth going into this upcoming quarter or the past quarter, in regards to let’s say, holding off on buying the Hopper Series in favor of the Blackwell series, that’s going to be coming out in the fall.
So I think that put to bed that concern at least for now.
And of course, the stock has responded on 10 for one stock split and all the other good news and we’re moving at higher levels right now.
So very good report across the board when it comes to Blackwell production, something that obviously was asked about in the news hall and Jensen saying that Blackwell right now is in full production, talk to us just about exactly what that means and how quickly you think NVIDIA will be able to scale that production.
That’s a good question and and a lot of the indications that we have have shown they’ve already built out the supply chain for Blackwell.
So they’re already preparing uh for, you know, companies like Amazon Microsoft, you mentioned that getting meta, they’re all building out these huge data center uh they want to use as A I chip.
So they’re, they’re preparing for that.
You know, there’s a lot of news flashing around.
I’ve heard October that they could start bringing out the Blackwell chip.
Other people have said December definitely in that calendar year, fourth quarter.
But you know, there’s going to be delays.
I mean, right now the Hopper 100 which is their key A I chip has about, I think about a 10 week delay between ordering and actually delivering.
So I’m sure there’ll be a massive influx in the fourth quarter of customers who want to up especially to the Grace Blackwell 200 which is supposedly the fastest chip that they create.
There will be people that are willing to pay for that.
It goes for about $70,000 estimated cost.
But I think right now they’re preparing and getting that supply chain ready to go so that they can meet that demand in the fourth quarter.
But there’s going to be lag times, there’s lag times even today uh with their current Hopper series.
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