NVDA "Priced for Perfection" & "Continues to Deliver Perfection"

本站添加: 2026-05-21

[00:00:00]And now we're moving to our panel, which of course is Nvidia today. Their highly anticipated earnings report beat investor expectations as data center revenue surged to a record high. CEO Jensen Wong said that the buildout of AI factories is accelerating at an extraordinary speed. Of course, that means it's time for our panel to join us to take a closer look at these numbers and more importantly the reaction that we're seeing today. Joining us now, Ed O'Gorman, CEO and CIO of River Wealth Advisors, and Tyler Eligard, senior portfolio manager at Gradient Investments. Great to have you both on the show this morning. Ed, let's start with you. We got Nvidia once again beating on revenue, on EPS, on data center sales, and on guidance. Yet, of course, we are lower now with if we hold this will be the fourth quarter in a row where we're seeing a negative reaction.

[00:00:45]You know, what are you seeing? What does it tell you about the expectations that we had going into this report?

[00:00:51]Well, I think just generally the expectations are very very high for uh not only Nvidia but but really all of the hyperscalers. But you know, particularly for Nvidia, I think to really get a significant bump uh you you would have to see some some significantly unexpected uh numbers come out of their earnings report. I think that they are are much more sensitive to disappointing um than than outperforming in in the earning cycle. I just don't see this as a name that is going to move a whole lot on news one way or the other unless it's bad. Uh, you know, I think when we look at Nvidia, we look at it from a fundamental perspective, a long-term perspective, something that's going to perform very attractive valuation uh given their growth. But, you know, the news uh cycle hasn't really had a significant impact on the stock because, you know, really it's I think widely held a lot of depth in the market. It's a very um very significant holding in a lot of portfolios. So, we just don't really see um significant bumps one way or the other on on earnings. And Tyler, as you looked at these numbers, I mean, have we reached the point with Nvidia where it just has to be like perfect and then some because they did what was I mean they have 85% revenue growth on 80 plus billion dollar quarterly base. I mean, is there even a historical comparison for that kind of scale and growth combination?

[00:02:17]not not not for this size of company. Um I think if you go back to 2024, I I believe their earnings and and revenue growth has has always been above that 60% threshold. So you you've gotten the performance out of the stock. So not saying Nvidia's performed poorly because it's it's done quite well. Um, but at this size and as Ed said, the the depth in the market, you're probably not going to get much movement on a on a earnings report of even though they beat and and guided above expectations, you're just not going to see the significant movement that you normally would get in a in a smaller type of company. So, uh, they are priced for perfection, but they continue to deliver perfection. And Ed, one of your key points in the notes that you sent over was that growth is broadening beyond hyperscalers into enterprise into sovereign AI into AI native clouds. Um why is that important for the long-term thesis here? Well, I think you know with any company you really want to look at concentration in the customer base and you know there there's a tremendous amount of spend obviously in uh hyperscaler AI buildout at some point that's going to plateau and so so having these other channels to plug into having other sources of you know in the customer base or even when we're looking at the product base and they're they're they're pretty good build on the CPU side versus GPU you know just is is indicative of a company that is is building that diversification both uh in the customer base and the revenue base which is is positive >> and Ed just highlighted uh that diversification there Tyler about the growing CPU opportunity and I saw in the notes that you sent over that you say that you think they have the potential to eventually compete directly with names like Intel and AMD. How meaningful could that business become? I think it could be quite meaningful when you start to think of the ratio of CPUs to GPUs and then also when you start to to consider the uh DRAM prices and and nan prices recently and the significant spike you've seen. Um but also Nvidia is not really getting credit necessarily for it when when you start to consider their their Vera Rubin platform. um when you start considering the the Vera CPUs versus Intel and AMD CPUs, I think there's a significant upside that the company could have there and and I when you look at the valuation of uh Intel AMD versus Nvidia, they're not it's it's not being accounted for at this point at in in our opinion.

[00:04:47]>> And Ed, I want to piggyback off of what Tyler just said there. I mean, we're seeing a lot of things being underappreciated. We're also seeing a lot of diversification as you mentioned here. Is Nvidia increasingly becoming what we might view more as like a a full stack infrastructure company rather than simply talking about them as predominantly a GPU company.

[00:05:07]I think there is that diversification there, but but really let's you know, let's be real about it. We're 70% GPU still, right? So there's there's a lot of a lot of diversification to come to to really get to that that sort of full stack um definition, but but certainly as I said the the diversification is happening. The the CPU work is is growing and that's uh that's a good sign for the the company's overall health.

[00:05:37]Um, and again I I look really, you know, Tyler mentioned some of these other companies and and when you're we're looking at on a valuation basis given the the u the fundamentals not only of the earnings growth and margin but balance sheet and cash flow. Um it's you know the only issue I think when when you're looking at Nvidia is just about everyone already owns it and and has participated and has overweight the stock. So, you know, really who can who can uh find room to to add it to their portfolio as a long-term holding because it's it's it's very attractively valued.

[00:06:16]>> Yeah. And right now, uh even maybe a bit more so as we're down more than a percent and a half this morning following those earnings right now at 219.88. Really appreciate you both being with us to take a closer look at the numbers we got from Nvidia. Ed Gorman from River Wealth Adviserss and Tyler Elgard from Gradient Investments.