Margins Hold, Earnings Nearly Double
The quarter’s GAAP gross margin came in much higher than the previous quarter, while net income nearly doubled compared to last year. In terms of overall free cash flow for the fiscal year, it was very high; and the company has returned billions to its shareholders through dividends and share repurchases, and a considerable amount still remains under its share buyback authorization.
Jensen Huang: The Inflection Point Has Arrived
According to CEO Jensen Huang, the agentic AI inflection point has arrived and enterprise adoption of AI agents is skyrocketing. Blackwell, Huang noted, is the “king of inference”; with the new “Vera Rubin” platform for supporting Blackwell’s ability to deliver inferences much more efficiently (by factors of ten) than existing solutions already on the market. Huang’s message was clear: NVIDIA will serve as the factory through which we will support businesses and individuals in the coming AI industrial era. Huang stated that his customers are moving quickly to invest in this opportunity.
Outlook Remains Bullish
NVIDIA’s forecast shows consistent revenue growth for the next quarter with gross margins holding close to the current level. The company was very clear in its message that it is not expecting any data center compute revenues from China going forward and makes a good point in doing so as this is a cautious and realistic position, based on the current environment. Overall, the short-term bias with Vera Rubin continues to be bullish as well as the locked in Meta partnership and demand continuing to build.
