NOT TOO LATE! I'm Buying Nvidia Stock (NVDA) After Earnings!

Summary

Nvidia's recent earnings call was pivotal, reflecting the company's role as a key driver in the AI revolution. The company reported record revenues of $30 billion, with a significant 88% coming from data centers, indicating a 154% year-over-year growth. Nvidia's new Blackwell AI chip, set to enter production in Q4, promises a substantial leap in performance, potentially accelerating the AI gold rush. Despite a temporary 3-month delay due to manufacturing challenges, the company is on track to meet demand. Nvidia's dominance in the data center GPU market, coupled with its innovative ecosystem, positions it favorably for future growth, despite competition from both chipmakers and cloud providers developing their own AI accelerators.

Takeaways

• 📈 Nvidia's recent earnings call was pivotal, with its results influencing the trajectory of the AI Revolution.
• 🌟 The term 'Magnificent 7' refers to companies like Amazon, Meta, and Tesla that are heavily investing in AI, driving market returns.
• 💰 Nvidia's revenue and earnings per share (EPS) exceeded expectations, with a significant year-over-year growth, indicating strong market performance.
• 🚀 Nvidia's data center business is booming, with revenues skyrocketing 154% year-over-year, underscoring the demand for AI infrastructure.
• 🏆 Nvidia dominates the data center GPU market with over 90% share, solidifying its position as a key player in AI technology.
• 🆕 The upcoming Blackwell AI chip from Nvidia is expected to revolutionize AI processing, offering大幅提升 in performance.
• 🛠️ Production delays for Blackwell were due to manufacturing challenges, not design flaws, with Nvidia addressing these to improve yields.
• 💡 Nvidia's focus on direct-to-chip liquid cooling with Blackwell signifies a significant shift in data center cooling technology.
• 📉 Despite strong earnings, Nvidia's stock price dropped due to a dip in gross margins, which was tied to the production challenges of Blackwell.
• 🔮 Looking ahead, Nvidia's continued innovation, including Blackwell and other upcoming technologies, positions it well for future growth in the AI sector.

Q & A

Why was Nvidia's recent earnings call considered one of the most important?

Nvidia's earnings call was considered one of the most important because it's not just about revenues and profit margins; it decides the speed and scale of the entire AI Revolution. Nvidia's performance is seen as a barometer for the investment in AI infrastructure by other companies.

What is the significance of the 'Magnificent 7' in the context of the AI Revolution?

The 'Magnificent 7' refers to companies like Amazon, Meta Platforms, and Tesla that have significant data center infrastructures, global products and services benefiting from AI, and deep pockets to invest aggressively in AI. Their performance largely drives the stock market returns related to AI.

How does Nvidia's position as a supplier of AI chips affect its importance in the market?

Nvidia's position as a supplier of AI chips is crucial because it means they are at the forefront of the 'AI Gold Rush.' Being the company that sells the essential tools ('picks and shovels') for AI development, Nvidia's revenue growth can indicate the pace of AI infrastructure investment by other companies.

What is Blackwell and why is it significant for Nvidia's future?

Blackwell is Nvidia's next-generation AI chip, which is expected to be a primary driver in the AI Gold Rush. It is designed to perform significantly better than its predecessor, Hopper, in AI training and inference tasks. The speed and scale of Blackwell's deployment in data centers will largely determine the progress of the AI Revolution.

How did Nvidia's financial performance in the reported quarter reflect the company's success?

Nvidia posted record revenues of $30 billion for the quarter, a 15% increase quarter over quarter and a 122% increase year-over-year. They also reported earnings per share of $6.8, which is 171% higher than a year ago, showcasing their strong financial performance.

What is the role of direct-to-chip liquid cooling in the adoption of Blackwell chips?

Direct-to-chip liquid cooling is significant for Blackwell chips as it allows for more efficient cooling, which is necessary for the high-performance demands of these chips. This technology is expected to become the standard for cooling in data centers, facilitating the adoption of Blackwell chips.

What are the risks Nvidia faces in terms of competition and supply constraints?

While Nvidia faces competition from chipmakers like Intel and AMD, and hyperscalers that make their own accelerators, these competitors do not directly compete with Nvidia's market share in GPUs. The real risks are complexity in their ecosystem and supply constraints, which Nvidia is addressing by working closely with partners like TSMC.

How did the delay in Blackwell's production affect Nvidia's gross margins?

The delay in Blackwell's production due to accuracy limitations in the manufacturing process led to lower yields, which in turn affected Nvidia's gross margins. Despite this, Nvidia managed to maintain high margins at 75.1%, showing their ability to adapt and address production issues.

What is the significance of Nvidia's share repurchase program for investors?

Nvidia's share repurchase program, with an additional $50 billion approved, is significant for investors as it shows the company's confidence in its long-term growth. Share buybacks can increase the value of outstanding shares and demonstrate a commitment to enhancing shareholder value.

What are Nvidia's plans for the long term in terms of product development?

Nvidia has a robust long-term product development plan, including the launch of Blackwell Ultra chips in 2025, followed by the Reuben architecture in 2026, and Reuben Ultras in 2027. These products are designed to be architecturally compatible, ensuring a smooth transition and continued investment in Nvidia's ecosystem.

Outlines

00:00

🚀 Nvidia's Pivotal Earnings Call and AI Revolution Impact

Nvidia's recent earnings call is deemed crucial as it's not just about financial performance but also the pace and scale of the AI revolution. The video aims to dissect Nvidia's latest earnings and its implications for the stock market. Nvidia, known for supplying AI chips, is central to the 'AI Gold Rush,' with its revenues indicating the level of AI infrastructure investment by other companies. The earnings call is particularly significant due to the introduction of Nvidia's next-gen AI chip, Blackwell, which is expected to be a key player in the AI market. The video promises to cover Nvidia's earnings results, the significance of Blackwell, potential risks, and future prospects for Nvidia's stock.

05:01

📈 Nvidia's Record Revenues and the Importance of Blackwell

Nvidia reported a record-breaking revenue of $30 billion for the quarter, showing a significant increase both quarter-over-quarter and year-over-year. Earnings per share also saw a substantial rise. The data center segment, which accounts for 88% of total revenues, experienced staggering growth, highlighting the importance of Nvidia's position in the AI market. The video discusses the potential impact of Nvidia's financial performance on the broader market and the significance of the Blackwell chip, which is anticipated to drive further growth. The discussion also touches on the risks associated with supply constraints and competition, as well as the strategic importance of Blackwell for data centers and its role in shaping the future of AI.

10:03

🔍 Deep Dive into Nvidia's Blackwell Chip and Market Dynamics

The paragraph delves into the technical aspects of Nvidia's Blackwell chip, which is designed to offer superior performance in AI training and inference compared to its predecessor, Hopper. It addresses the production challenges faced due to the precision required for the ultra-high-speed chip-to-chip links, leading to a temporary drop in profit margins. The video explains how Nvidia is addressing these challenges and the expected ramp-up of Blackwell production. It also discusses the shift towards direct-to-chip liquid cooling in data centers, which is a significant change influenced by Blackwell's capabilities. The risks and competition Nvidia faces are also explored, emphasizing that the real challenge is not from competitors but from the complexity of the technology and the need to innovate and meet high demand.

15:04

🌟 Future Outlook for Nvidia's Stock and Market Strategy

The final paragraph outlines the future prospects for Nvidia's stock, including the anticipated ramp-up of Blackwell sales and the expansion of Nvidia's networking solutions. It discusses the company's approach to share buybacks, which signals long-term confidence and can benefit shareholders. Nvidia is also preparing for the AI PC market with new graphics cards and microservices, which are expected to be a revenue multiplier. The paragraph concludes with a look at Nvidia's long-term strategy, including the development of new GPUs and the company's commitment to improving its hardware ecosystem, ensuring ongoing adoption and growth. The video encourages viewers to invest in understanding the science behind stocks for better investment decisions.

Keywords

💡Earnings Call

An earnings call is a conference call that publicly traded companies typically hold after releasing their quarterly or annual financial results. It's a platform for company executives to discuss the results and answer questions from analysts and investors. In the context of the video, Nvidia's earnings call is considered important as it provides insights into the company's financial health and future prospects, which are crucial for shareholders and potential investors.

💡AI Revolution

The AI Revolution refers to the transformative impact of artificial intelligence technologies on various industries and society as a whole. In the video, the AI Revolution is central to understanding Nvidia's role, as the company's earnings and technological advancements are seen as indicators of the pace and scale at which AI is being adopted and developed across the market.

💡Data Center

A data center is a facility that houses a large array of networked computer servers, storage systems, and other network-related infrastructure. They are critical to cloud computing and big data processing. The video emphasizes Nvidia's data center revenues, which have grown significantly, indicating the company's importance in providing the hardware necessary for AI and data processing.

💡Blackwell

Blackwell is Nvidia's next-generation AI chip, which is expected to significantly advance the capabilities of AI training and inference. The video discusses Blackwell as a key driver for Nvidia's future growth and as a pivotal technology in the ongoing AI Revolution. Its performance and market adoption are central to the company's prospects in the data center GPU market.

💡Gross Margins

Gross margins represent the proportion of revenue left after deducting the cost of goods sold (COGS). It's a key financial metric that indicates a company's profitability. In the video, Nvidia's gross margins are discussed to highlight the company's profitability and efficiency in its operations, with a particular focus on how the introduction of Blackwell might impact these margins.

💡Supply Constraints

Supply constraints refer to limitations in the production or availability of goods or services. In the context of the video, Nvidia faces supply constraints due to high demand for its products, particularly its advanced AI chips. The company's ability to overcome these constraints is crucial for meeting market demand and maintaining its competitive edge.

💡Competition

Competition in this context refers to the rivalry between companies in the same industry, striving to gain market share and customer preference. The video discusses Nvidia's competition from both traditional chipmakers like Intel and AMD, and tech giants like Microsoft, Google, and Amazon that develop their own AI accelerators. Understanding this competition is vital for assessing Nvidia's market position and future growth potential.

💡Market Share

Market share is the portion of the total available market that a company or product captures. The video highlights Nvidia's dominant market share in the data center GPU market, which is a testament to its strong position and influence in the AI industry. High market share often translates to greater pricing power and profitability.

💡Liquid Cooling

Liquid cooling is a method of cooling electronics, such as computer processors, by circulating a liquid through a heat exchanger. The video mentions that Blackwell supports direct-to-chip liquid cooling, which is a significant technological advancement for data centers, as it allows for more efficient cooling and can support higher-performance computing.

💡Share Buybacks

Share buybacks occur when a company repurchases its own shares from the open market, reducing the number of shares available and potentially increasing the value of the remaining shares. In the video, Nvidia's board of directors approving $50 billion in share buybacks is mentioned as a sign of confidence in the company's future and a way to return value to shareholders.

💡Nims

Nims, or NVIDIA AI microservices, are modular software components that can be combined to create more complex AI applications. The video discusses how Nims can be a revenue multiplier for Nvidia, as they offer a subscription-based model for AI services, which can lead to recurring revenue streams and increased customer stickiness.

Highlights

Nvidia's earnings call is crucial for understanding the pace and scale of the AI Revolution.

The 'Magnificent 7' tech companies are driving stock market returns due to their AI investments.

Nvidia stands out as the primary supplier of AI chips, akin to selling picks and shovels during a gold rush.

Nvidia's revenue and earnings per share have exceeded expectations, indicating strong market performance.

Data center revenues now account for 88% of Nvidia's total revenues, highlighting their significance.

Nvidia's data center revenues grew by 154% year-over-year, showcasing rapid expansion in the AI sector.

Nvidia holds over 90% of the data center GPU market, demonstrating its dominance.

The global AI market is expected to grow at a CAGR of 36.8% over the next 8 years.

Nvidia's Blackwell chip is set to be a game-changer in the AI industry with its high-performance capabilities.

Blackwell's innovative design allows for a 10 TB per second link, tricking two chips to function as one.

Production delays for Blackwell were due to fabrication accuracy limitations, not design flaws.

Nvidia expects to ship billions of dollars worth of Blackwell chips in Q4, indicating strong demand.

Direct to chip liquid cooling is a significant shift in data center operations, favored by Blackwell.

Nvidia faces competition from both chipmakers and hyperscalers, but its market position remains strong.

Nvidia's supply constraints are a result of high demand for its products, not a lack of supply.

Nvidia's share repurchase program and new product lines signal confidence in long-term growth.

Nvidia's Nim microservices are expected to be a significant revenue driver in the future.

Long-term plans include the release of new GPU architectures, ensuring compatibility and future sales.

Transcripts

Nvidia just had their most important

earnings call ever whether you're a

longtime Nvidia shareholder or looking

to buy Nvidia stock for the first time

you should know that this isn't just

about revenues and profit margins

nvidia's earnings decide the speed and

the scale of the entire AI Revolution so

in this video I'll break down everything

you need to know about nvidia's latest

earnings call and what it means for the

entire stock market your time is

valuable so let's get right into it to

say this was one of the most anticipated

earnings calls of all time would be a

massive understatement this revolution

is just starting but it all starts with

Nvidia in my opinion it is the most

important earnings not just of the Year

potentially in many years because of

what this represents in terms of attack

let me explain the reason for all this

hype ever since open AI released chat

GPT in November of 2022 the stock

markets returns have been largely driven

by the Magnificent 7 that's because

companies like Amazon meta platform

forms and even Tesla already have huge

data center infrastructures they have

Global products and services that

benefit from Ai and they have very Deep

Pockets that puts them in the perfect

position to invest aggressively in Ai

and outspend the startups and smaller

businesses that compete with them

especially at a time where interest

rates and inflation are making

everything more expensive boy do I feel

that so that's where investors put their

money and as a result the Magnificent 7

outperformed the other 493 companies in

the S&P 500 by a massive margin but even

among those seven one company far

outshine the rest and that's Nvidia

since they're supplying all the AI chips

that everyone else is investing in in a

gold rush you want to be the company

that sells picks and shovels if nvidia's

Revenue drops below expectations that

means companies are investing less into

AI infrastructure than we thought and

the AI Gold Rush is slowing down for the

rest of the market if nvidia's Reven

grow that means the opposite this AI

revolution could be bigger than we

thought or at least happen faster which

drives up forward estimates for the rest

of the market so in a very real way

Nvidia has been driving the returns for

the rest of the S&P 500 that's one

reason why their earnings are always so

important but I said this earnings call

specifically was the most important ever

and that's because of Blackwell nvidia's

Next Generation AI chip I believe the

Blackwell ecosystem will be the primary

picks and shovels in this entire AI Gold

Rush so its speed and scale will largely

be determined by how fast envidia can

get black Wells into Data Centers and at

what cost so that's what I'll cover in

this video I'll walk you through

nvidia's earnings results focusing on

data centers I'll explain what's going

on with Blackwell they're hugely

important Next Generation AI chip I'll

talk about nvidia's biggest risks right

now like their supply constraints and

their competition and of course what's

in store for Nvidia stock in the short

medium and long term there's a lot to

talk about so let's Dive Right In to

nvidia's most important earnings call

Nvidia posted record revenues of $30

billion for the quarter which is a 15%

quarter over quarter and a whopping 122%

year-over-year Nvidia also posted

earnings per share of 68 Which is

171% higher than a year ago after

accounting for their 10 for one stock

split things get even crazier when we

focus on nvidia's data center revenues

which now account for about 88% of their

total revenues today that's why I'm not

covering their other business units

nvidia's data center revenues came in

at$ 26.3 billion up 16% quarter over

quarter and an insane

154% year-over-year just to be clear

that means nvidia's data center revenues

grew by 2 and 1 half times in one year

after they already became a trillion

doll company and they're on Pace to make

over a $100 billion in AI accelerator

Revenue this year alone compare that to

nvidia's two biggest quote unquote

competitors AMD isn't even close to

Nvidia data center sales and Intel is

well as a result Nvidia holds over a 90%

share of the data center GPU market and

that's before their Blackwell GPU sales

ramp up that huge market share is why

Nvidia has so much pricing power even as

a hard Ware company they reported gross

margins of

75.1% putting nvidia's profit margins on

par with most software companies and

that's huge since according to Market us

the global artificial intelligence

Market is expected to almost 12x over

the next 8 years which is a compound

annual growth rate of

36.8% but many of the companies building

Next Generation AI applications are not

publicly traded think about the 9s and

early 2000s companies like Amazon and

Google went public very early in their

growth cycle but today companies are

waiting an average of 10 years longer to

go public that means investors like us

can miss out on most of the returns from

the next Amazon the next Google the next

Nvidia so I spent a lot of time digging

into this and The fundrise Innovation

fund is a great way to invest in some of

the best tech companies before they go

public venture capital is usually only

for the ultra wealthy but fund Rises

Innovation fund gives regular investors

access to some of the top

private pre-ipo companies on Earth

without breaking the bank The fundrise

Innovation fund has an impressive track

record already investing over $100

million into some of the largest most in

demand Ai and data infrastructure

companies so if you want access to some

of the best late stage AI companies

before they IPO check out the fundrise

Innovation fund using my link below

today all right so Nvidia reported

record revenues and earnings per share

both of which also beat analyst EXP

expectations on top of that they issued

stronger than expected guidance for the

current quarter so why did Nvidia stock

drop 8% after such good earnings well

even though their 75.1% gross margins

are actually up 5 Points year-over-year

they're down 3.3 points from the

previous quarter and this is where

things get really interesting nvidia's

margins dropped because of something in

Blackwell's designs that I've actually

been calling out for a few quarters now

something that's really important for

investors to understand this is

Blackwell the successor to nvidia's

current generation of gpus called Hopper

and compared to Hopper these new

Blackwell chips perform a whopping four

times better at AI training and an

insane 30 times better at AI inference

that's why every company wants these

things since this huge leap in

performance means data centers get a lot

more compute power from a Blackwell

system of the same cost size weight

power or whatever is limiting their

current data center footprint but

Blackwell gpus are actually two separate

dieses connected by an ultra high-speed

10 TB pers second link this connection

is so fast that it actually tricks the

two dieses into thinking there a single

chip it's a really clever design that

gets around a lot of the physical

limitations of the machines that build

these chips a lot but not all of them it

turns out that the rumored 3-month delay

for Blackwell isn't because of a design

flaw at all but due to the accuracy

limitations of some of the machines at

tsmc the company that builds and video

chips the placement of these Ultra

high-speed chipto chip links needs to be

insanely precise to hit those 10 terb

pers second speeds if the link placement

is off even by a tiny amount the whole

chip could fail as its different metal

layers and materials warp and expand

when they heat up during normal

operations as a result the percentage of

working Blackwell chips that tsmc could

produce or the yield went down fewer

chips for the same amount of production

time and materials means lower profit

margins causing nvidia's margins to drop

to

75.1% for the quarter and as for that

rumored 3-month delay Nvidia says it

already made the necessary changes to

improve yields and Blackwell production

is scheduled to ramp up in the fourth

quarter and into next year Nvidia

expects to ship several billion dollars

worth of Blackwell chips in Q4 of this

year and one big reason that data

centers really care about Blackwell in

particular is direct to chip liquid

cooling today around 90% of all server

RS are air cooled that means that a lot

of data centers including hyperscalers

like Amazon Google and Microsoft are

making massive infrastructure changes to

support liquid cooling for their

Blackwell systems specifically industry

estimates suggest that up to 80% of

cooling will become direct to chip

liquid cooling over time so this is a

huge shift in how data centers operate

around the world that's why Blackwell is

such an important chip and this was such

an important earnings call all right all

right now that we walk through nvidia's

data center earnings what's going on

with Blackwell and why it's so important

to Data Centers let's talk about the

risks and if you feel I've earned it

consider hitting the like button and

subscribing to the channel that really

helps me out and it lets me know to put

out more content like this thanks and

with that out of the way let's talk

about nvidia's risks starting with their

competition Nvidia has two kinds of

competition and Ironically neither of

them actually compete with Nvidia here

let me explain the first kind of

competition comes from chipmakers like

Intel and AMD but nvidia's revenue from

data centers is five times bigger than

intels and amds put together and beyond

that a lot of Intel and amd's data

center revenues actually come from

selling CPUs not gpus or other kinds of

accelerators so they don't really

compete with Nvidia as much as serve the

part of the data center Market that

doesn't run on nvidia's ecosystems given

nvidia's 90 plus% market share for gpus

I'd say this is a pretty small piece of

the market the second kind of

competition comes from hyperscalers that

make their own accelerators mainly

Microsoft Google and Amazon but there

are two key reasons they don't compete

with Nvidia either the first and most

obvious reason is they don't sell their

chips to anyone else Microsoft's Azure

Maya Amazon's tranium and inferentia

chips and Google's tensor processing

units only exist within their own clouds

to help their own customers with AI

workloads specific to their use cases

nvidia's gpus are much more general

purpose and over 55% of nvidia's data

center revenues come from companies

outside these big three Cloud providers

and that number is only growing over

time but the second reason that

Microsoft Amazon and Google don't really

compete with Nvidia is that's just not

how data centers work in the first place

let me give you an example most people

only have one phone or one car at a time

so every sale for one company is a

missed customer for their competition

every car Tesla sells is one GM doesn't

every phone Google sells is one that

Samsung doesn't but data centers don't

work like that especially when it comes

to AI when Google buys a GPU from AMD or

uses their homegrown tensor processing

units that's not one less sale for

NVIDIA since data centers handle a wide

variety of workloads for many different

kinds of businesses data centers are

portfolios of different hardware and

software Solutions and as demand for a

specific kind of workload grows data

center operators will buy more of the

right Hardware to support it but in the

end their goal is always to meet the

changing needs of their customers and

optimize their costs only a small

portion of all workloads around the

world involve AI today so Blackwell

would be total Overkill that's why data

centers buy chips from AMD or Intel for

certain tasks they build their own chips

for others and they use nvidia's gpus

for heavy duty training and inference

and no matter what Intel or AMD might

say

inference is becoming a heavyduty AI

application as the industry moves from

predicting the next word in a sentence

to generating images and entire videos

so while companies might make chips that

Benchmark well against Nvidia for large

language models their performance

remains to be seen for text to video

models like open AI Sora or complex

protein structure and interaction models

like Alpha fold 3 by Google deepmind my

point is nvidia's biggest risk isn't

competition at all it's complexity

Nvidia didn't change Blackwell's design

to compete with AMD or Amazon they

changed it because even the best chip

fabrication company on the planet had

trouble placing their Ultra high-speed

chipto chip connections and that's just

one piece of one part of the ecosystem

investors may not realize this but when

Nvidia comes out with a new chip

architecture like Hopper Blackwell or

Reuben they're not designing one chip

they're designing five separate chips

that make up an entire computing

platform a new GPU an nvlink switch chip

that connects multiple gpus together a

network interface card and two separate

Smart Switch chips to connect multiple

racks together one for ethernet and one

for infiniband if any one of those chips

has an issue nvidia's entire data center

ecosystem has an issue that's why I

spend so much time understanding

nvidia's products not just their profits

and why I focus on the science behind

this stock but credit where credit is

due look how fast Nvidia was able to

address this issue with Blackwell and

how little it dropped their overall

margins from 78 to 75% for a single

quarter so the only other risk worth

mentioning is nvidia's Supply

constraints look every company on Earth

is constrained by one of two things

they're either Supply constrained or

demand constrained and as long as Nvidia

keeps making massive leaps in compute

power they're going to be Supply

constrained but Jensen was crystal clear

that Nvidia is ramping up Supply to meet

the insane demand for Blackwell and

backfill demand for Hopper it seems like

a very clearly this was a production

issue and not a fundamental design issue

with Blackwell but the deployment in the

real world what does that look like

tangibly and is there a sort of delay in

the timeline of that deployment and thus

revenue from that product I I um let's

see that's just the fact that I was so

clear and it wasn't clear enough uh kind

of tripped me up there right away and so

so let's see we uh we made a mass change

to improve the yield functionality of

Blackwell is wonderful we're sampling

Blackwell all over the world today uh we

have started volume production uh volume

production will ship in Q4 Q4 we will

have billions of dollars of Blackwell

revenues and um we will ramp from there

we will ramp from there either way I'd

rather see Nvidia run out of supply then

run out of demand and as a shareholder I

trust in video's leadership to keep

innovating expanding their total

addressable market and work closely with

tsmc and their other partners to meet as

much demand as they can speaking of

which let's talk about what's in store

for Invidia stock over the short medium

and long term because there's plenty for

shareholders to look forward to in

addition to Blackwell sales ramping up

over the next few quarters they're also

ramping up their ethernet based

networking Solutions like their Spectrum

Force switch and their Bluefield data

processing units both of these are chips

that do calculations to spread AI

workloads out across multiple gpus and

then bring the final outputs back

together $3.7 billion of nvidia's

Revenue came from networking products

this past quarter which is actually 30%

more than all of amd's data center

revenues for the quarter and Beyond the

networking sales themselves Nvidia is

expanding its total addressable Market

big time by supporting ethernet as well

as infiniband and that means even more

data centers can integrate Blackwell and

Hopper systems down the road over the

medium term Nvidia is joining the likes

of Apple Google and meta platforms when

it comes to share BuyBacks when a

company buys back some of its shares the

value of each outstanding share goes up

since it represents a slightly bigger

piece of the company nvidia's board of

directors approved another $50 billion

in share Buybacks in addition to the

$7.5 billion of shares they're still

authorized to buy back from the last

repurchase approval I like share

BuyBacks way more than dividends because

they show more long-term confidence in

the business and those shares can be

sold again at better valuations while

dividends never make it back to the

company for future growth besides

BuyBacks Nvidia is gearing up for the

aipc market with new GeForce RTX

graphics cards and Nims at a high level

nvidia's Nim microservices stitch

together different functions to create a

higher level service for example

nvidia's Avatar cloud engine or Ace is

built on microservices to do things like

Translate speech to text and text to

speech match a characters lips and

facial expressions to what they're

saying follow a specific set of rules

context and guard rails and so on I

think nvidia's Nims will be a real

Revenue multiplier for NVIDIA over the

long term since companies pay a per GPU

subscription for these services and in

the long term Jensen actually announced

three different gpus at computex 2024

the Blackwell Ultra chips which ship in

2025 the architecture after Blackwell

which is called Reuben which will ship

in 2026 and then Reuben Ultras which

will ship in 20127 all of these gpus are

architecturally compatible which means

that a hopper compute tray can be

replaced with Blackwell or a Reuben tray

down the road so when a data center buys

chips from Nvidia today they're already

investing in the infrastructure that

supports new Chips making future sales

much more likely for NVIDIA that also

means that older chips will benefit

whenever Nvidia or one of their

customers writes a new acceleration

library or software application so the

whole Nvidia Hardware ecosystem gets

better over time which leads to more

adoption which leads to more developers

and so the cycle repeats full circle

this is why it's so important to

understand the science behind the stocks

and if you want to see how I picked some

of the highest performing tech stocks

before they made massive moves earlier

this year check out this video next or

if you want to see all my Nvidia covers

including interviews with their

Executives this playlist is for you

either way thanks for watching and until

next time this is ticker symble you my

name is Alex reminding you that the best

investment you can make is in you