00:00 Speaker A
Big beat on the top and bottom line for Nvidia here in Q4. They posted revenue of $68.1 billion, EPS of $1.62. The estimate was for $1.53 and 65.8 billion in revenue. It’s a big jump over last year’s numbers as well when they posted EPS of 89 cents and revenue of $39.3 billion. But I think what Wall Street is reacting to here, as you can see, shares higher, is the outlook for Q1. They’re anticipating
00:30 Speaker A
60, uh, 76.44 billion uh and 79.56 billion somewhere in the middle there. Wall Street’s estimates for for 72.8 billion. So going higher uh than Wall Street’s uh guidance anticipations. Uh but when we look at the data center business, that’s obviously their crown jewel. That brought in 62.3 billion for the period. The projections there were for 60.2 billion. Now, it’s important to note that once again,
01:00 Speaker A
according to CFO Colette Kress, hyperscalers had a little bit over 50% of that revenue. So those are the likes of Microsoft, Meta, Amazon, Google. We all know that they have $650 billion worth of AI spending coming this year. Obviously, a lot of that will be going to Nvidia as well as AMD as far as uh Meta goes with their announcement just yesterday. One more thing uh I want to point out real quick. Uh it’s a little part of their
01:28 Speaker A
business now, but it’s uh gaming. That came in uh just shy of estimates of $4 billion. Uh and obviously that’s just been kind of up and down. It’s very seasonal uh when it comes to that category and when they’re going to come out with new cards. They haven’t done that in the most recent year uh as they did at last CES uh in 2025. But a big beat for for Nvidia here, and that’s really, I think, what what they needed as far as the stock price goes.
01:55 Speaker B
they crushed the guide, they crushed consensus and they crushed the whisper number which I’d mentioned was uh 75 billion. I’m actually surprised the stock’s not up even more today. And it’s clearly that execute demand is not an issue. It it’s it’s the question the demand is there. The question is how much, how quickly uh can they get this get this out and I think what they proved is is even for
02:26 Speaker B
some of the more optimistic investors, they they blew that away.
02:30 Speaker C
Angelo, uh Nvidia does say here, the guide does not assume any China data center compute. I I’m just curious, Angelo, ultimately, what do you think the opportunity is for Nvidia in China? What does that market look like for them?
02:49 Angelo
I mean, it depends on, you know, what what they’re allowed to kind of sell into there, what the Chinese government allows on their end, what the US government allows on its end, right? I mean, you you look at, you know, what AMD guided to, I mean, I think for Q1, they guided to only about 100 million. Um, they had about 300 million or 90 million or so in Q4. So, um, you know, I think overall, both and Nvidia and AMD are very cautious about the the China landscape.
03:19 Angelo
I mean, ultimately, I mean they should be able to easily pump out 5 billion plus a quarter in China. But again, it’s it’s one of those situations right now where um you just don’t know what the landscape is going to look like because um of the geopolitical uncertainties from both sides. So it’s it’s really difficult if if not impossible to really say what the potential is there because at this point in time, we just don’t know what is ultimately going to be allowed to be sold out there.