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Instant Reaction: Nvidia Sales Forecast Falls Short · Bloomberg Intelligence

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  Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
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  Speaker 2: Let's talk in video and video shares did shed more
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  Speaker 2: than two percent ahead of its earnings report that are
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  Speaker 2: due in the coming minutes. The stock up more than
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  Speaker 2: one hundred and fifty percent so far this year. It
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  Speaker 2: is the top performer in the S and P five
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  Speaker 2: hundred and the NASDAQ one hundred. Let's go down to
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  Speaker 2: Bloomberg Technology co host ed Ludlow, who joins us from
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  Speaker 2: our San Francisco bureau, ed the most important numbers you're
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  Speaker 2: watching in just a few minutes. When these earnings cross,
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  Speaker 2: what are they?
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  Speaker 3: I mean, all of them.
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  Speaker 4: It's probably the most important earnings report in my career,
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  Speaker 4: which is not quite as long as both of yours.
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  Speaker 4: But you go straight to the data center business, and
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  Speaker 4: not necessarily for the quarter gone. We have a good
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  Speaker 4: sense of how that will go. Will probably be twenty
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  Speaker 4: five billion dollars of data center revenue. You have to
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  Speaker 4: go straight to the outlook or the guide for the
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  Speaker 4: fiscal third quarter because that answers the only question we have,
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  Speaker 4: which is what is the staying power of this AI
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  Speaker 4: investment cycle?
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  Speaker 1: And you know the thing is, I think about the expectations,
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  Speaker 1: how high they are ed, and we've seen the stock,
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  Speaker 1: which we saw it sell off kind of like early
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  Speaker 1: or mid June, right, and then yes, we saw an
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  Speaker 1: equal bounce like about twenty seven percent from that low
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  Speaker 1: over the summer. So expectations going into this are super high,
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  Speaker 1: which makes me think, does it have to be a
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  Speaker 1: tremendous beat as we've come to expect from this company,
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  Speaker 1: otherwise there's going to be a little bit of disappointment
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  Speaker 1: or some questions.
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  Speaker 4: Well, let's take the third quarter fiscal third quarter guide example.
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  Speaker 4: You know, the average analyst estimate is thirty one point
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  Speaker 4: nine billion dollars, but at the very top end of estimates,
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  Speaker 4: you're talking thirty eight thirty nine billion dollars. There are
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  Speaker 4: some on the street who have very high expectations. I've
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  Speaker 4: learned from people like you at Bloomberg over the years.
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  Speaker 4: One market session a market does not make. This is
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  Speaker 4: a stock up one hundred and fifty percent year to date,
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  Speaker 4: but almost one thousand percent from its October twenty twenty
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  Speaker 4: two bear market low. It was incredibly overbought January through March,
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  Speaker 4: and then again in June and July, and retail investors
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  Speaker 4: continue to pile in that sets us up for some tension, I.
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  Speaker 2: Think, yeah, speaking attention, about thirty seconds away from when
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  Speaker 2: we are expecting those numbers.
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  Speaker 1: Doc is up one point six percent here ahead of
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  Speaker 1: the earnings. So we're just waiting for Nvidia to cross.
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  Speaker 1: So we're seeing some trade ahead of the results, actually crossing,
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  Speaker 1: some optimistic trading, if you will. As we said, the stock,
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  Speaker 1: which was a little bit lower today, it's bouncing here
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  Speaker 1: almost two percent here in the aftermarket. So I don't know,
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  Speaker 1: seven seconds and we expect these numbers.
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  Speaker 2: Yeah, I'm gonna let Ed Ludlow take a look at
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  Speaker 2: his Bloomberg terminal, as we do expect these numbers to take.
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  Speaker 2: These numbers to cross imminently right now. As a reminder
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  Speaker 2: in Kiga notes, let's do this typically hits at twenty
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  Speaker 2: pass all right.
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  Speaker 1: Second quarter revenue folks, thirty billion dollars estimate was twenty
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  Speaker 1: eight point eighty six billion, So again that is a beat.
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  Speaker 1: Company approving an additional fifty billion dollars in share buyback. Again,
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  Speaker 1: the stock up about two and a quarter percent here
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  Speaker 1: in the after market.
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  Speaker 2: Yeah, the company c's third quarter revenue at thirty two
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  Speaker 2: point five billion plus or minus two percent. The company
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  Speaker 2: maintains its quarterly dividend at one cent per share. Second
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  Speaker 2: quarter data center revenue that is a very important metric
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  Speaker 2: to keep an eye on. That as the vast majority
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  Speaker 2: of the company's revenue coming in at twenty six point
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  Speaker 2: three billion dollars, beating estimates of twenty five point oh
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  Speaker 2: eight billion dollars. So justin gross margin for the second
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  Speaker 2: quarter coming in right above, just above estimates, seventy five
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  Speaker 2: point seven percent, Carol estimates were for seventy five point
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  Speaker 2: five percent.
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  Speaker 1: All right, we're talking with Ed Ludlow, the co host
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  Speaker 1: of Bloomberg Technology, and you said the numbers, you're watching
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  Speaker 1: all of them, but you did single out initially the
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  Speaker 1: data center revenue, which we were expecting about twenty five billion.
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  Speaker 1: That's a bee.
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  Speaker 3: Yeah, it's a B.
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  Speaker 4: I mean, I've got the ticker for after I was
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  Speaker 4: trade in front of me, and my eyes are bouncing
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  Speaker 4: all around, and I think the market's taking a few
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  Speaker 4: seconds to make up its mind.
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  Speaker 3: Let's just run through it.
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  Speaker 4: Thirty two point five billion dollars plus all minus two
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  Speaker 4: percent is basically, I think in line with the thirty
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  Speaker 4: one point nine billion dollars that the street was looking for.
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  Speaker 4: I'll do the math on the point in due course.
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  Speaker 4: An impressive beat, I suppose on data center revenue in
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  Speaker 4: the second court had just gone in overall revenues. Then
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  Speaker 4: we asked the question, why why was it better? You know,
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  Speaker 4: they telegraphed that pretty well. And my goodness, don't you
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  Speaker 4: love it when there's consistency, when something that we were
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  Speaker 4: talking about continues to happen. And that is shareholder friendly policy.
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  Speaker 4: And I think that fifty billion dollars of edition will
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  Speaker 4: share buybacks, no one would be sort of disappointed with that.
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  Speaker 3: The stock up, you know, ish in after hours.
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  Speaker 2: Yeah, you know, we had a we were talking earlier
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  Speaker 2: about if things came in in line with expectations, because
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  Speaker 2: expectations were so high, you might not see a huge reaction, Carol, Right,
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  Speaker 2: even with a fifty billion dollars share buyback, we're barely
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  Speaker 2: seeing stock move in the after hours.
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  Speaker 1: Yeah, just up about one percent. Hey, dig it into
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  Speaker 1: the press release. You're going to talk with Jensen Wong,
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  Speaker 1: founder and CEO n Vidia later on. He says hyper
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  Speaker 1: demand remains strong and the anticipation for a blackwell is incredible.
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  Speaker 1: He said the company rechieve record revenues as global data
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  Speaker 1: centers are in full throttle to modernize the entire computing
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  Speaker 1: stack with accelerated computing and generative AI. Like, we know
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  Speaker 1: this guy knows how to speak and talk about his company,
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  Speaker 1: his market, his industry. But what are you looking for
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  Speaker 1: as you go through this press release and what are
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  Speaker 1: you thinking about that conversation you're going to have with it?
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  Speaker 4: Yeah, my eyes went straight to the Blackwell commentary and
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  Speaker 4: the anticipation being high. Excitement, anticipation are interesting words, but
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  Speaker 4: they are not a granular explanation of what's happening with Blackwell.
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  Speaker 4: The reporting was that due to the complexity of its design,
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  Speaker 4: it has two compute dies basically think about two triangles
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  Speaker 4: with a split between them, because it's so big.
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  Speaker 3: It's so much bigger.
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  Speaker 4: Than any other high performance GPU that's gone before it.
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  Speaker 4: And the reporting was that this presented a production challenge
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  Speaker 4: and so we want some specific detail on that. But
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  Speaker 4: again this is classic Jensen Wang that everything is intact,
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  Speaker 4: the AI investment cycle is there, and clearly he's bullish
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  Speaker 4: because in video is ninety nine percent of the market
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  Speaker 4: for this range of AI accelerators.
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  Speaker 2: Shares bouncing around a little bit, but they are now
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  Speaker 2: lower by about two point two percent in after hours
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  Speaker 2: trading AD I do wonder what the demand story is
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  Speaker 2: from customers, and now that we're seeing the latest results
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  Speaker 2: from in video, what's the story that you're seeing? I
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  Speaker 2: should say shares continue to move lower, down about three
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  Speaker 2: percent and after hours.
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  Speaker 4: So this is why we go straight to the guide
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  Speaker 4: or outlook for the current period or the fiscal third quarter.
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  Speaker 4: Because of the timing of Nvidia's earnings today August twenty eighth,
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  Speaker 4: it comes at the end of earning season where the
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  Speaker 4: capital expenditures guidance from the biggest Nvidia customers has been
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  Speaker 4: and gone. So if you look at the capital expenditures
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  Speaker 4: guidance of a Microsoft I think Carol pointed out very
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  Speaker 4: smartly that about forty five percent of Microsoft capex goes
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  Speaker 4: directly to Nvidia. We knew that they were committed to spending,
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  Speaker 4: but how confident is in video in that trend continuing
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  Speaker 4: over a longer time horizon. You look at the stop
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  Speaker 4: after hours down now almost five percent. One has to
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  Speaker 4: keep their feet on the ground and ask is that
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  Speaker 4: so severe? Is it so surprising given how high a
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  Speaker 4: bar this quarter was and how lofty expectations were.
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  Speaker 2: One hundred and fifty percent higher so far this year
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  Speaker 2: at five percent decline after earnings that beat estimates but
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  Speaker 2: didn't blow estimates out of the water.
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  Speaker 1: Well, I think you go to the outlook, like you
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  Speaker 1: keep you know, emphasizing ed this high idea and I
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  Speaker 1: know you put it out on the on the blog
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  Speaker 1: of what came in all right, better than what the
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  Speaker 1: average estimate was. But when you think about the high
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  Speaker 1: numbers that some were expecting almost as much as thirty
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  Speaker 1: eight billion dollars for that third corent revenue, like that
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  Speaker 1: is going to color how investors, you know, react to
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  Speaker 1: this number. They were expecting more, a lot more.
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  Speaker 4: Yeah, And like I know that this is something that
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  Speaker 4: Bloomberg people always say, but you also just have to
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  Speaker 4: give some sort of context of where the stock trades. Right,
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  Speaker 4: it is a stock that trades at thirty eight times
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  Speaker 4: forward twelve month earnings. Again, I always look at Relative
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  Speaker 4: Strength Index RSI and the terminal, but one data set
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  Speaker 4: that I've tracked is that retail investors have absolutely piled
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  Speaker 4: into this.
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  Speaker 3: Stock of late.
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  Speaker 4: It had all of the hallmarks of something that was
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  Speaker 4: set to swing in. I have direction based on options
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  Speaker 4: market trading, and I think the point that I'm making
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  Speaker 4: without telling our audience about how the sausage is made
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  Speaker 4: too much. One very wise editor said on our planning
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  Speaker 4: call that even if it beats expectations or street or
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  Speaker 4: consensus estimates, this is a likely outcome because of where
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  Speaker 4: we've positioned ourselves in the market going into the print.
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  Speaker 2: Meaning that expectations are just so high for this company.
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  Speaker 3: Correct.
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  Speaker 4: Yeah, Directs, I think, Tim, that's probably the understatement of
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  Speaker 4: the century.
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  Speaker 2: Well, you know, you're also dealing with base effects. As
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  Speaker 2: we mentioned, the comps are really tough given where this
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  Speaker 2: was a year ago and where investors expected to go
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  Speaker 2: in terms of growth rate. I mean, as Abigail do
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  Speaker 2: a little pointed out on our cair you know they
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  Speaker 2: were seeing what north of two hundred percent growth some quarters.
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  Speaker 1: Well, you know, this is something I used to think
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  Speaker 1: about with Apple, like when it didn't live up to expectations,
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  Speaker 1: it got harder and harder to move the needle on that.
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  Speaker 1: And yet when you look at the numbers and I
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  Speaker 1: understand it's all relative, and you've got to give the
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  Speaker 1: context in terms of growth and so on and so forth.
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  Speaker 1: And video is still selling a lot of stuff, right,
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  Speaker 1: and it is the game in town if you want
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  Speaker 1: those advanced AI chips.
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  Speaker 4: Okay, guys, I'm really sorry to go on attendent. These
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  Speaker 4: headlines are super important in videos saying it expects several
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  Speaker 4: billion dollars in Blackwell revenues in the fourth quarter. I
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  Speaker 4: King's just hit the button on the red headline. I'm
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  Speaker 4: not surprised. Yeah, that this was the question that in
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  Speaker 4: video makes a commitment to bring a new generation of
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  Speaker 4: its AI accelerator to market annually, and there have been
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  Speaker 4: the reporting on the design challenges about Blackwell. What in
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  Speaker 4: Vidia's confirming is that they will book really really significant
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  Speaker 4: revenue on that product in the early stage of its ramp,
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  Speaker 4: in the final three months of the calendar year or
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  Speaker 4: its fiscal fourth quarter. But they do make a concession
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  Speaker 4: that they had to change the Blackwell mask production step.
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  Speaker 4: I have to plead ignorance on the technicalities of that.
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  Speaker 4: I'm going to run to Ian's desk and ask him,
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  Speaker 4: but they are at least talking about it.
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  Speaker 3: I think that this.
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  Speaker 4: Commentary comes from not the earnings released necessarily, but the
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  Speaker 4: CFO commentary that comes as an appendix to it.
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  Speaker 3: So we'll dig into that as we go.
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  Speaker 2: Is several billion dollars not sufficient?
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  Speaker 1: Ed, what is several billion dollars?
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  Speaker 4: I mean the relatively significant after hours decline is now
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  Speaker 4: sort of less significant. That might give you a sense
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  Speaker 4: of how investors feel about that. But I think the
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  Speaker 4: idea was that, you know, this is a product that
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  Speaker 4: we're not talking I've said this to you guys so
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  Speaker 4: many times, and I almost don't apologize for it. When
• 10:46
  Speaker 4: we talk about an AI chip, we're not talking about
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  Speaker 4: this little thing you can hold in your hand. The
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  Speaker 4: core technology, yes, is probably about the size of a sandwich,
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  Speaker 4: but it goes into a rack that goes into a server,
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  Speaker 4: a big three hundreundred pounds server box in rows and
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  Speaker 4: rows that fill out a data center. And that's the
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  Speaker 4: scale that we're talking about. So when you produce it
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  Speaker 4: at scale, it presents a challenge. And to me that
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  Speaker 4: the shipment of several billion dollars seems substantive in this instance.
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  Speaker 1: Yeah, it's interesting. I feel like, you know, we're going
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  Speaker 1: to want a little bit more in terms of specifics
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  Speaker 1: about Blackwell and what those shipments in terms of the
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  Speaker 1: fourth quarter what exactly means, because that's outlook fourth quarter
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  Speaker 1: not so far away, and you do wonder if that's
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  Speaker 1: something that moves the needle significantly. This is everything that
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  Speaker 1: you know people have been talking about.
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  Speaker 2: Hey, Ed, before we let you go, you have a
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  Speaker 2: conversation with Jensen coming up a little later, a special
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  Speaker 2: edition of Bloomberg Technology, an exclusive interview with Jensen Wong.
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  Speaker 2: Just the last forty five seconds we have with you,
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  Speaker 2: give us how without giving away the questions, tell us
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  Speaker 2: how you're thinking about this.
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  Speaker 3: Yeah, I think that you know me. I love details.
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  Speaker 4: So I'm going to ask about Blackwell, although it's Bloomberg
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  Speaker 4: policy not to give questions in advance of interview, and
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  Speaker 4: I'm sure somebody from Nvidia is listening, but that's the question.
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  Speaker 4: And then I heard you talking to remain boss Stick
• 12:01
  Speaker 4: about his surprise that revenue comes from just five players.
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  Speaker 4: I thought I'd been saying that on our network every
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  Speaker 4: week the last two years.
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  Speaker 3: But that is the question.
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  Speaker 4: When do you move beyond that, you want to sell
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  Speaker 4: to smaller and medium sized enterprises, governments and other public institutions.
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  Speaker 4: Do you have some evidence that that's already happening.
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  Speaker 2: That's a point that Ian King brought up at the
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  Speaker 2: top of our two o'clock hour right here on Bloomberg
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  Speaker 2: TV in Bloomberg Radio. I'm going to tell Romaine to
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  Speaker 2: listen to you more, Ed, so he's not surprised in
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  Speaker 2: the future.
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  Speaker 3: Sy A lot going on, all.
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  Speaker 1: Right, Good luck, kiddo. With that, we'll be listening to
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  Speaker 1: that interview Ed La La, co host of Bloomberg Technology
• 12:37
  Speaker 1: at Bloomberg TV and again Bloomberg Technology, we'll have that
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  Speaker 1: half hour special at six thirty pm Wall Street Time,
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  Speaker 1: highlighted by that exclusive interview that Ed will have with
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  Speaker 1: the CEO of Nvidio, Jensen Wog. And right now we've
• 12:51
  Speaker 1: got Sure's of Nvidia down about five point one percent
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  Speaker 1: here in the aftermarket.
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  Speaker 2: Happening quickly. The reaction has been big. It was nothing
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  Speaker 2: and then it was more than it was eight percent.
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  Speaker 2: It was like three percent.
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  Speaker 1: Did you go down as much as eight percent at
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  Speaker 1: one point. It's been bouncing around and we've seen, yeah,
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  Speaker 1: some interesting moves here. And we are seeing as I mentioned,
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  Speaker 1: Naszak one undred many futures there down about two percent here,
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  Speaker 1: So we're seeing some drag. Not coming and done completely,
• 13:19
  Speaker 1: but it's interesting. Let's see what Bloomberg Intelligence Senior Semiconductor
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  Speaker 1: Alice kun John Sabani has to say about that, he
• 13:26
  Speaker 1: joins us. He's out there in our San Francisco bureau.
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  Speaker 1: All right, top of mind for you, cun John, tell
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  Speaker 1: us about the quarter? Do they do Okay? How's the outlook?
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  Speaker 1: It seems like there's a little bit of disappointment here.
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  Speaker 5: Yeah, I mean, I think they did really good as
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  Speaker 5: part of our expectations. I'm sure the Nvidia obsesses and
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  Speaker 5: might be disappointed given the magnitude of the beat, which
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  Speaker 5: we had called out to be in the single digit range,
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  Speaker 5: and especially against the lofty, unsustainable expectations that some of
• 13:58
  Speaker 5: the again Nvidia opssis have been forming. But fundamentally in
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  Speaker 5: terms of long term, in terms of the competitive landscape,
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  Speaker 5: everything remains intact. We don't see any big risks out
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  Speaker 5: of this earning so far.
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  Speaker 2: Do you see any softness when it comes to the outlook?
• 14:14
  Speaker 2: Even though it did it exceeded some expectations, it didn't
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  Speaker 2: exceed the loftiest expectations. Are you seeing signs of softness
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  Speaker 2: with its customers?
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  Speaker 5: I wouldn't call it a softness in terms of demand.
• 14:27
  Speaker 5: I would rather call it more of a timing. I mean,
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  Speaker 5: in the given last thirty days, we have come to
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  Speaker 5: know about the black Well delays, right, But as we
• 14:35
  Speaker 5: had called out in our preview, there's enough demand for
• 14:38
  Speaker 5: the Hopper series and the supply for that has come along,
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  Speaker 5: so they have the ability to ship more and more
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  Speaker 5: to this demand, which kept them intact and the guidance
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  Speaker 5: still came to a bait. Of course, I think you know,
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  Speaker 5: the DLA might actually push out the magnitude of beat
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  Speaker 5: which we would have expected into twenty five calendar twenty five,
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  Speaker 5: which might actually drive increased to the upside of twenty
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  Speaker 5: five numbers. As we get more details on it.
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  Speaker 2: Help can textualize this for us in Video expects to
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  Speaker 2: ship several billion dollars of Blackwell revenue in the fourth
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  Speaker 2: quarter of the year. I feel like Carol, I'm parsing
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  Speaker 2: a fed statement here.
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  Speaker 1: It will kind of vague.
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  Speaker 2: What does several mean? Kun John? Is that a lot?
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  Speaker 2: Or is that disappointing to investors?
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  Speaker 5: I wouldn't call it completely disappointing. Again, given what we
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  Speaker 5: came to know over the last four weeks. When we
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  Speaker 5: were working on the previous two weeks ago, we thought
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  Speaker 5: it will be very little volume. So the several billion
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  Speaker 5: actually is good in a way and comforting that Okay,
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  Speaker 5: there will be some shipment, and it's not completely delayed
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  Speaker 5: until the first Q fiscal quarter, so I wouldn't call
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  Speaker 5: it completely disappointing.
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  Speaker 1: So we are watching big tech falling after Nvidia their results,
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  Speaker 1: as I mentioned, the Nasdaq one under many futures in
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  Speaker 1: the aftermarket down one point six percent. Uh, it's you know,
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  Speaker 1: I'm looking at the q Q that also we see
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  Speaker 1: it down about half a percent. I mean, when it
• 16:04
  Speaker 1: comes to the AI story and the build out and
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  Speaker 1: the spend, you sound really comfortable with what we've got
• 16:10
  Speaker 1: from Nvidia, that that narrative, that story, that actuality is
• 16:14
  Speaker 1: still intact. Is that a fair assessment of how you
• 16:18
  Speaker 1: see this?
• 16:19
  Speaker 5: It is and given we look at the fundamentals, especially
• 16:23
  Speaker 5: from a long term perspective, and not the magnitude of
• 16:25
  Speaker 5: beat and race quarter to quarter. When you look at
• 16:28
  Speaker 5: the disc earning season, almost all of the hyperscalers, the
• 16:31
  Speaker 5: big internet companies, the big cloud players actually announced a
• 16:35
  Speaker 5: beat to their capex and almost across the board to
• 16:38
  Speaker 5: their revenues. Right, So that again validates like the demand
• 16:42
  Speaker 5: is not slowing. Nothing has changed in the last two weeks,
• 16:45
  Speaker 5: just given the Nvidia results. So I agree with your
• 16:48
  Speaker 5: comment that we do feel comfortable around the broader dynamics
• 16:52
  Speaker 5: and the demand tailwinds for the AI chips.
• 16:54
  Speaker 1: So one of the things we just talked about with
• 16:56
  Speaker 1: ur Ed Ludlow too, is when you look at the
• 16:58
  Speaker 1: supply chain function on Nvidia their top customers, it's kind
• 17:03
  Speaker 1: of a who's who of big megacap tech companies. Microsoft
• 17:07
  Speaker 1: is their number one customer. Forty five percent of their
• 17:10
  Speaker 1: cap X goes to Nvidia Meta number two customer, forty
• 17:16
  Speaker 1: one percent of their CAPEX spend already goes to Nvidia
• 17:19
  Speaker 1: Super micro Computer, which we've been talking about a lot
• 17:21
  Speaker 1: in its woes or alleged woes that one about, I
• 17:26
  Speaker 1: don't know. A big chunk of what they spend also
• 17:29
  Speaker 1: goes to Nvidia. Alphabet is another one, almost fifty percent
• 17:32
  Speaker 1: fifteen of their CAPEX goes to Nvideo. So you have
• 17:37
  Speaker 1: enough confidence that those companies will continue to spend. They
• 17:40
  Speaker 1: are so important right to the Nvidia growth story. So
• 17:43
  Speaker 1: as long as you hear from them that they are spending,
• 17:46
  Speaker 1: you're pretty confident.
• 17:48
  Speaker 5: Exactly as long as we don't see any negative feedback
• 17:51
  Speaker 5: from them publicly. The confidence that demains. One more point
• 17:55
  Speaker 5: to highlight from the CFO commentary letter. This quarter there
• 18:00
  Speaker 5: percentage of data center revenues from the cloud actually came
• 18:03
  Speaker 5: down to forty five percent. It had been running over
• 18:06
  Speaker 5: fifty percent over the last year. So this is even
• 18:09
  Speaker 5: though on a magnetude terms, a small victory, I still
• 18:12
  Speaker 5: see it as a positive direction that they're diversifying slightly
• 18:17
  Speaker 5: slowly but away from the big cloud customers, and the
• 18:21
  Speaker 5: enterprise and vertical segment is growing significantly faster.
• 18:25
  Speaker 2: Okay, we got yeah. We heard from Ian King earlier
• 18:31
  Speaker 2: and also from Ed Ludlow earlier about diversification of revenue
• 18:36
  Speaker 2: Konjohn and the idea that the company is looking to
• 18:41
  Speaker 2: get business from governments, smaller companies offloading work that usually
• 18:48
  Speaker 2: would take place in the cloud to stuff that's on
• 18:50
  Speaker 2: prem what's that business from your view look like? Are
• 18:56
  Speaker 2: they making headway there?
• 18:58
  Speaker 5: They are, definitely. And again the one clear sign is
• 19:01
  Speaker 5: when you parse out the data center into sort of
• 19:04
  Speaker 5: three buckets. One is the cloud customers, right, one is
• 19:07
  Speaker 5: the enterprise, which is a much much more diverse but
• 19:10
  Speaker 5: smaller pockets compared to the cloud, and the other one
• 19:13
  Speaker 5: being the internet and vertical companies. We want to continue
• 19:18
  Speaker 5: seeing the combination of these Internet vertical companies combined with
• 19:21
  Speaker 5: enterprise continue to grow much faster than the cloud. Look,
• 19:24
  Speaker 5: the cloud guys have the biggest wallets, so they are
• 19:27
  Speaker 5: definitely going to drive a majority of the growth. But
• 19:30
  Speaker 5: we want that percentage that moved from fifty to forty
• 19:32
  Speaker 5: five to continue moving slower. At the same time, in
• 19:36
  Speaker 5: media revenues continue to grow as well.
• 19:38
  Speaker 1: Just to reset everybody, because nvideo results they are out.
• 19:41
  Speaker 1: They've been out now for I don't know about fifteen
• 19:43
  Speaker 1: minutes or so. Our headline story written by Bloomberg's Ian King,
• 19:48
  Speaker 1: who we talked to at two o'clock ahead of this.
• 19:50
  Speaker 1: And Nvidia, which is really the chip maker at the
• 19:53
  Speaker 1: heart of the artificial intelligence boom gave a revenue forecast
• 19:56
  Speaker 1: that fell short of some of the most optimistic estimates.
• 19:59
  Speaker 1: Token conser learns that its explosive growth is waning. Third
• 20:01
  Speaker 1: quarter revenue will be about thirty two point five billion.
• 20:05
  Speaker 1: The company just put that out. Analysts had predicted thirty
• 20:07
  Speaker 1: one point nine billion on average, so that was a beat,
• 20:11
  Speaker 1: but some estimates range as high as thirty seven point
• 20:13
  Speaker 1: nine billion, so almost thirty eight billion sales in the
• 20:16
  Speaker 1: fiscal second quarter, which ran through July. They though Tim
• 20:18
  Speaker 1: did top analyst projection.
• 20:20
  Speaker 2: I'm looking at Eddian King's commentary on our live blog,
• 20:22
  Speaker 2: which you should all check out while you're listening to
• 20:24
  Speaker 2: us on Bloomberg Radio or watching us on YouTube or
• 20:27
  Speaker 2: Bloomberg Originals. He writes that most questions will zero in
• 20:30
  Speaker 2: on how many billions of dollars in revenue Blackwell will
• 20:32
  Speaker 2: generate in the fourth quarter. Yeah, that's that's the question
• 20:36
  Speaker 2: we've been asking.
• 20:37
  Speaker 1: Yeah, absolutely right, this is what we want to know.
• 20:39
  Speaker 1: So you know, we're talking also with Bloomberg Intelligence Senior
• 20:42
  Speaker 1: Semiconductor Alice Kunjohn Sabani who is joining us, and you
• 20:45
  Speaker 1: seem very comfortable with the report. Stock now just down
• 20:49
  Speaker 1: about one and a half percent, so there's been a
• 20:50
  Speaker 1: lot of bouncing around in the aftermarket. What if you
• 20:54
  Speaker 1: were sitting down with the CEO as our Ed Ludlow
• 20:57
  Speaker 1: is going to be doing at six pm Wall Street
• 20:59
  Speaker 1: time or six is it six PMOS six six thirty
• 21:02
  Speaker 1: pm Wall Street time? What would be some of your
• 21:03
  Speaker 1: top questions that you'd want to ask? Jensen Wang, co
• 21:07
  Speaker 1: founder and CEO of the company.
• 21:10
  Speaker 5: Well, I would definitely want to get extract as much
• 21:12
  Speaker 5: color as I can into the calendar. Twenty five outlook.
• 21:16
  Speaker 5: I know he might not provide that, but any more
• 21:18
  Speaker 5: color I can get on the volume or the dollar
• 21:21
  Speaker 5: outlook for the Blackwell series would be really would shun
• 21:26
  Speaker 5: all the concerns that we have right now and sort
• 21:29
  Speaker 5: of put to bed all the uncertainty.
• 21:31
  Speaker 1: All right. That really helps a lot because it does
• 21:34
  Speaker 1: feel like it all comes down to Blackwell, right. It
• 21:36
  Speaker 1: was kind of going in Kunjan, Thank you so much.
• 21:38
  Speaker 1: Look forward to reading your research that'll come out a
• 21:41
  Speaker 1: little bit later and into tomorrow. Bloomberg Intelligence senior semiconductor
• 21:44
  Speaker 1: analysts kujoh and Sabani on those Nvidia earnings