Nvidia Earnings SHOCKER

[00:01] Well, the markets are really sweating

[00:05] this one. I certainly am because it is

[00:09] the pinnacle of earning season.

[00:14] It's getting hot and heavy around here.

[00:16] But that's all right because we've got

[00:18] Nvidia on deck out within the next 1

[00:21] minute. We are looking for uh revenue.

[00:24] Current expectations are expected to

[00:26] come in at $79 billion.

[00:30] Nvidia has beat across the board eight

[00:34] out of the last eight earnings. So

[00:36] basically for the last two years

[00:38] straight, we've got beats on revenue, on

[00:41] EPS adjusted, on EPS gap, on net income,

[00:44] on operating profit, on EBIDA,

[00:46] everything. We're looking for a move of

[00:48] about 5 and a half% today. So we'll see.

[00:53] We know this market just loves hardware

[00:56] right now. Nvidia on a forward PE basis

[00:59] is actually pretty dang cheap. It's got

[01:02] somewhere around 50 to 90% upside in it.

[01:06] Will we finally break through that 300

[01:09] threshold for Nvidia? Now, obviously, we

[01:12] got really big IPOs coming out. Uh,

[01:15] OpenAI, SpaceX, Anthropic, all expecting

[01:19] to throw more money into Nvidia chips.

[01:22] So let's see what happens with earnings.

[01:24] Earnings are due within the next like 5

[01:25] to 10 seconds here. So here we go.

[01:27] Looking for 79 and we got uh okay Q1

[01:32] revenue forecast beats margin at 75%

[01:35] revenue comes in at 81.62

[01:38] that is more than a $2.4

[01:41] billion beat on Q1 revenue. And as usual

[01:46] the initial reaction is slightly down.

[01:50] classic Nvidia that so like they

[01:52] forecast one number, Wall Street's like,

[01:54] "No, you guys are going to come in way

[01:56] higher." Nvidia beats their own forecast

[01:58] by $2.4 billion. Uh you've got uh

[02:02] forecast margins still stable at a

[02:04] midpoint of 7 uh5% even. Q2 revenue is

[02:09] expected to come in at about 91 billion.

[02:12] The expectation was 87. That's another

[02:15] beat right here about 4ish%. data center

[02:18] revenue, of course, Q1, $75.2

[02:22] billion of data center revenue, $75.2

[02:27] billion in one freaking quarter. Holy

[02:30] smokes, that forecast, $91 billion

[02:35] expected in Q2. Honestly, I think

[02:37] Jensen's going to come out and say,

[02:38] "Boys and girls, all these IPOs, they're

[02:41] going to raise $200 billion. Guess how

[02:43] much money they're going to spend on

[02:45] Nvidia chip step, bro?

[02:47] all of it.

[02:49] Uh this morning on the course member

[02:51] live stream, by the way, we've got the

[02:52] Memorial Day sale going on. We uh we

[02:54] opened on the market at like I think it

[02:56] was like 7:06

[02:59] or something like that. Somewhere around

[03:00] there. Yeah, 7:06. And we had a call

[03:03] that we were going to get to 7:14 today.

[03:05] That was the target. We got to 713.

[03:09] 713 and 15 cents on the cues, which is

[03:11] pretty impressive. So, if you want to be

[03:13] part of those alpha membership calls,

[03:15] make sure you're part of it every

[03:16] morning in the course member liveream.

[03:17] But for now, look at this. Nvidia

[03:20] literally falling 2% after authorizing

[03:23] an $80 billion share buyback and

[03:28] boosting the quarterly dividend to $25

[03:32] up from one freaking penny. So, we got

[03:36] buybacks of $80 billion. We got

[03:39] dividends of 25 cents a share.

[03:42] We got beats on revenue. We got beats on

[03:46] forecast. We got amazing margin. We got

[03:50] a raise of guidance. And step bros, the

[03:55] stock is stuck. Stock now down 3%

[03:59] because that makes all the sense in the

[04:01] world. I told you when I was going to go

[04:04] live, I'm sweating it. And I'm literally

[04:07] sweating it cuz it's like it makes no

[04:09] damn sense. But the good news is we kind

[04:12] of saw that coming this morning. We

[04:15] talked about it. We made a prep video

[04:17] for Nvidia. Uh we've talked about how

[04:19] Nvidia does not have the best reputation

[04:21] for going straight up on earnings. Uh

[04:24] this morning we were looking at a

[04:26] breakdown chart showcasing how confusing

[04:30] Nvidia can be after uh you know earnings

[04:34] data comes out. And usually what we find

[04:36] is anywhere between, let me see if I can

[04:38] grab, actually I think I have the

[04:39] picture right here because I'll just

[04:40] pull it up. We pretty much have like a

[04:42] coin toss as to what happens to the S&P

[04:45] 500 after Nvidia earnings. It is, take a

[04:49] look at this. This is what we talked

[04:51] about this morning. And we could see the

[04:53] S&P 500 performance in the 1 2 3 4 5

[04:56] days or 1 month after Nvidia earnings

[04:59] really mixed bag. So it's not unusual to

[05:02] see it. It's typically profit taking,

[05:05] but it's honestly Like, let's

[05:08] just be real. It's Nvidia is

[05:10] making so much damn money. And the

[05:14] market doesn't care. It seems like the

[05:16] market would rather invest in a stupid

[05:18] stock like Cerebrus, which is rigging

[05:21] their earnings to make it seem like

[05:23] they're profitable so they can pump and

[05:25] dump and cash out insiders and retail

[05:27] could be left holding the damn bag.

[05:30] Well, Nvidia over here is making a

[05:32] fortune and the stock goes down. That's

[05:34] just the nature of Nvidia, though.

[05:36] That's the nature of the short-term

[05:38] market. Now, let's get into We've got

[05:40] CFO commentary. So, we're going to

[05:42] download uh and take a peek at some of

[05:44] that commentary, and we'll go through a

[05:46] little bit more color here. Still

[05:48] sweating. There's a reason we're

[05:50] sweating because it's Nvidia earnings.

[05:52] Obviously, there could be no other

[05:54] reason why we would be sweating. The

[05:56] stock would be all across the board. And

[05:59] of course it goes down, but we'll see.

[06:02] Jensen is a really good salesperson.

[06:03] He'll probably be able to pump it up.

[06:04] And sometimes you get profit taking like

[06:06] just a few seconds after the bell, like

[06:08] the earnings come out, but everything

[06:10] here is really good. I do have a note

[06:12] here that indicates no shipments of

[06:15] Hopper, the H200 yet to China in Q1.

[06:18] Don't anticipate that. You can actually

[06:20] see their margin here uh has uh let's

[06:23] take a look here. We've got Q1 fiscal

[06:25] year 27. This is what we're in now. We

[06:28] can see that 75ish% margin there. Very,

[06:32] very, very impressive. Holy smokes,

[06:34] dude. Look at that income margin. I

[06:36] mean, how impressive is that? So, if I

[06:39] divide this 58321

[06:41] divided by 81615,

[06:43] I got 71 Oops, I'm using the wrong

[06:46] keyboard. 71.4%.

[06:49] So literally every time you go buy or

[06:52] whatever buys an uh uh you know buys a

[06:55] GPU from Nvidia, 71.4

[07:00] is not going to their gross margin like

[07:02] at Microsoft. No, it's literally going

[07:05] to the bottom freaking line. That is

[07:08] such a high margin business. This is a

[07:11] dream business. Damn, bro. operating

[07:16] income at 53 uh.5.

[07:19] So I'm curious that means we probably

[07:21] have some interest income in between

[07:23] here. Uh net prob higher due to

[07:27] interest. You know we don't have a full

[07:29] statement here right now. The the actual

[07:31] 10 Q the quarterly report won't come out

[07:33] for another few days. So we just sort of

[07:35] get like highlights right. Uh really

[07:39] really really impressive margins though.

[07:41] And then if we compare to last quarter,

[07:44] net margin 42960.

[07:47] Oh, that could have also been boosted by

[07:49] their stakes in other companies like

[07:51] maybe their open AI investments or

[07:53] whatever, right? They might mark some of

[07:55] those to market. Uh but over here, we

[07:58] actually only had a 63% margin. And if I

[08:02] go to last year at this time, 18775 /

[08:07] 44062,

[08:08] I have a 42.6% 6% margin. So these

[08:12] people are making hand over fist. This

[08:15] is absolutely insane. They have almost

[08:19] doubled their net income percentage. And

[08:22] they basically almost actually I think

[08:24] they've tripled net income. 58 divided

[08:27] by 18. Yeah, bro. 3.2x on net income.

[08:32] Holy moly. Holy moly. 3.2x on net income

[08:36] compared to last year. and margin nearly

[08:39] double. Bro, what's not to love? And an

[08:43] $80 billion buyback. 80 bill buyback. I

[08:46] got dividends of 25 cents a share. Uh,

[08:50] you know, I got a forecast that's being

[08:52] raised. This is so good. The stock is

[08:56] cheap. Raised forecast. I think the

[08:59] problem is for people is just big,

[09:01] right? It's a uh a cheap and big stock.

[09:06] Uh now in fairness it's only cheap based

[09:09] on forward expectations but there's no

[09:12] indication of a slowdown here. No

[09:14] indication of slowdown. Uh I really

[09:16] think the IPOs are actually going to

[09:18] boost this company even more. Uh

[09:21] Anthropic

[09:23] uh OpenAI SpaceX will prop boost even

[09:27] more uh in terms of spending for this

[09:29] sort of uh you know this company here

[09:32] Nvidia. Uh really really impressive.

[09:35] Let's go take a peek at uh here we go.

[09:39] Hypers scale. The hyperscalers

[09:41] represented about half of their income.

[09:43] Uh no slowdown over here. You can see

[09:46] that's a pickup from the last quarter as

[09:48] well. I've got AI clouds industrial and

[09:50] enterprise. So other enterprise doing

[09:52] fine as well. Enterprise is also growing

[09:55] fantastically. I mean they did the

[09:57] percentages for us here. I got over a

[09:59] double on hypers scale 74. So, Hypers

[10:02] scale is actually growing faster

[10:04] year-over-year. That's insane. Hypers

[10:06] scale growing faster year-over-year

[10:10] um than nonhypers scale. So, the biggest

[10:15] are spending even more, which makes

[10:19] sense.

[10:20] Uh let's see here.

[10:23] Okay, let's see. Revenue for the first

[10:24] quarter up 85% 20. I mean, these are

[10:26] just insane numbers. Uh look at this.

[10:28] Now we're talking about the ramp of the

[10:30] Blackwell 300 demand for Infinity Ed.

[10:33] You know, House hack has some black

[10:34] wells. Uh I cannot wait to release our

[10:38] real estate AI. Like we're still

[10:40] targeting the end of June, which is what

[10:42] we've been promising for, you know, well

[10:44] since we announced the product at the

[10:46] end of last year. Uh we are so excited.

[10:49] Uh but I mean, hey, Blackwell has helped

[10:52] us has helped contribute to us being

[10:54] able to generate real products that

[10:56] people can use. uh and and we are loaded

[10:59] up with CPU compute right now as well

[11:01] and those are all things that are

[11:02] helping us generate actual tools for

[11:05] people. Uh so we're really excited about

[11:07] that. But I mean it makes sense and

[11:08] we're we're just a small startup and

[11:10] we're seeing it right. So these larger

[11:12] companies are doing very well here as

[11:14] well. No shipments of products to China.

[11:16] That's not a surprise. The Chinese

[11:18] aren't allowing this right now. This is

[11:20] a uh you know the Chinese Chinese

[11:22] company. So, uh, White House authorized

[11:25] China, uh, killed it. Okay. So, then

[11:30] I've got, let's see, Vera Rubin on track

[11:33] for second half of the year. Okay. Vera

[11:36] Rubin, second half of year on track.

[11:41] I've got, let's see here.

[11:44] Edge computing revenue for the first

[11:45] quarter up 6.429%. I want to see what's

[11:48] going on in automotive, honestly.

[11:51] outlook. Dude, look at that. 90. Dude,

[11:52] they're gonna guide a hundred billion

[11:54] before we know it. This is absolutely

[11:56] crazy. Somebody here writes, "S1 for

[11:59] SpaceX arrives Wednesday evening." Oh,

[12:02] wow. Okay. Well, we will definitely

[12:04] cover that. Somebody in the chat says,

[12:05] "Nvidia stock has recovered." That's

[12:07] great. I mean, like, these earnings are

[12:09] so good. It shouldn't be bad. Like, this

[12:12] should not go down. These earnings, like

[12:14] these are dream earnings. How much money

[12:17] this company makes. absolute dream

[12:20] earnings and the stock initial reaction

[12:22] is down. It's That's what I'm

[12:25] saying. These earnings are great. Uh

[12:27] beating I mean you couldn't ask for

[12:28] better so far. Okay, so we got CFO

[12:30] commentary. Uh okay, here we go. The

[12:34] press release is finally out. They're

[12:36] really like slow sometimes with actually

[12:39] like updating their website, which is

[12:40] surprising cuz like they're computing

[12:42] company. It's like really you guys

[12:43] having trouble like getting the form on

[12:45] the website? You guys having trouble

[12:46] getting it up? You know, like you need

[12:48] to get some pee pee up in here. I mean,

[12:50] they are the definition of pee pee.

[12:51] Okay. They shouldn't have any problems.

[12:55] Uh, okay. So, uh, I want to see

[12:59] automotive. Honestly, auto

[13:02] auto. Auto auto.

[13:07] Really? They're not going to break down

[13:08] any automotive revenues? That's a

[13:10] bummer. So, I'll have to wait for the 10

[13:12] Q to get automotive revenues. A little

[13:14] bit of a bummer. Uh, let's see. their

[13:16] R&D here. Whoa, look at their R&D

[13:19] actually almost doubled over here. I

[13:22] mean, it's not really noticeable

[13:24] because, you know, they spend 30% more

[13:27] selling their products and their revenue

[13:28] is up a double. Like, who cares? Their

[13:30] R&D is up a little bit. Big deal. So,

[13:34] like their revenue is just destroying.

[13:36] I actually think that once the whole

[13:38] chip bubble pops, which it will

[13:40] eventually, we don't know yet, you know,

[13:43] when there there is no uh indication yet

[13:47] of a rollover of hyperscaler or

[13:50] artificial intelligence spend. So, we

[13:51] don't really know when that rollover is

[13:53] going to be yet, but when it comes,

[13:55] watch, Nvidia is going to end up being

[13:56] an FSD SAS play, and people are going to

[13:58] be like, "Oh my gosh, you know, I

[14:00] thought it was going to be Tesla." And

[14:01] watch, it'll end up being Nvidia. It's

[14:02] pretty remark pretty remarkable. Uh,

[14:06] okay. So, let's just look at a little

[14:07] bit of their commentary here.

[14:10] Uh, okay. Repurchase authorization. We

[14:12] talked about $80 billion. That's great.

[14:15] AI purpose build data centers, data

[14:18] factories, token factories. Yeah. Yeah.

[14:20] Yeah. We already know about all the

[14:21] marketing. We know data center. Okay.

[14:24] What do we got over here? Announced Vera

[14:26] Rubin including the Vera CPU. People

[14:29] underestimate how valuable the CPU

[14:32] business is for Nvidia. Like this is so

[14:36] brilliant. They're so freaking smart.

[14:38] Even their acquisition of Gro Gro Grock,

[14:41] whatever the hell you want to call it,

[14:42] the GR OQ, not to be confused with

[14:45] Elon's Gro.

[14:50] All right. Uh, then you got enter

[14:52] production of Nvidia Dynamo, open source

[14:54] software that boosts generative AI and

[14:56] agentic interface on Blackwell GPUs by

[14:58] up to 7x.

[15:01] Okay. Uh oh. in inference not uh

[15:06] interface right okay inference so I

[15:08] always wonder though you know at some

[15:11] point their chips are going to become so

[15:13] good that we're not going to need as

[15:15] many tokens anymore right that's the

[15:17] turning point for

[15:20] when they almost kill themselves uh and

[15:22] that'll be very painful that's probably

[15:25] why Nvidia is not like a $300 or $400

[15:27] stock yet because right now it does

[15:29] justify over $300 easy it'd be fairly

[15:32] valued over $300 $, but people are

[15:34] worried as soon as there's a little

[15:36] inkling that the money spent stops it.

[15:39] Every comp is going to be negative,

[15:41] right? And I think that's just what

[15:42] people are so worried about, but there's

[15:44] no sign of it yet. Expanded Google Cloud

[15:47] including Vera Rubin, of course, Google

[15:50] Gemini is is very good, very good. Uh,

[15:54] Nvidia Blackwell, Blackwell Ultra GPU is

[15:57] fine. Here we go. Marll, shout out to

[15:59] Marll expanded AI ecosystem. So, I

[16:02] actually think Marll is undervalued as

[16:04] well. The difference between Marll and

[16:06] Nvidia is Nvidia is already fat fat. OH

[16:10] MY GOSH, DUDE. It bounced at my damn

[16:12] line. Are you kidding, dude? I I swear

[16:16] every day I feel like I make a video and

[16:18] I'm like, "Guys, guys, it bounced at my

[16:20] line." And I I feel like people watch my

[16:22] videos and they're like, "Oh, sure it

[16:23] did, Kevin. Sure, sure. You just drew

[16:25] the line there after the fact." So, like

[16:27] I feel like I have to do the occasional

[16:29] live stream to talk about the li like

[16:31] the show. No, the lines are real. You

[16:33] got to break through 22706

[16:36] here, you know? It's and and there it's

[16:39] technical analysis, right? That's what

[16:41] what we do. Uh and we do that every day

[16:43] in the course member live streams. We do

[16:45] um it's it's very I think diverse what

[16:47] we do. Technical analysis, momentum

[16:50] analysis. There's a momentum stock we

[16:52] were looking at this morning that was up

[16:54] like 15%. I'm not sure if it closed up

[16:56] 15%, but it was up like 15%. Honestly, I

[16:58] think it's going to keep going. We'll

[16:59] talk more about that one tomorrow. Uh

[17:01] we've got um short-term trades,

[17:04] medium-term trades, long-term trades.

[17:06] Long-term trades are for people with

[17:08] really big balls, and short and

[17:10] medium-term trades are for people who

[17:12] want, you know, to see some dollars a

[17:15] little sooner. Uh anyway, so uh Marll is

[17:18] actually a combination of a medium-term

[17:21] trade and a long-term trade. Uh Marll

[17:24] has been pretty good and uh they've

[17:26] they've really done fantastically. Uh of

[17:30] course if you want more of that

[17:31] analysis, remember just join us

[17:33] Kevin.com. We got some cool things

[17:34] coming out for course members uh very

[17:36] soon. Me Kevin app is expanding and uh

[17:40] we'll be raising the price again on the

[17:42] membership on uh I think Tuesday. So the

[17:44] day after Memorial Day since the market

[17:46] will be closed on Monday. We're expiring

[17:48] the coupon code on Tuesday. So you got

[17:50] six days to think about it. If you have

[17:52] questions, you could email us at

[17:53] [email protected]. Let's keep going here.

[17:55] So, we got a server edition GPU. This is

[17:57] another Blackwell uh chip. They've got

[18:00] that's fine. Anything you can go sell to

[18:02] any various different level. You know,

[18:03] you got smaller startups who want

[18:05] Blackwells and then you've got

[18:06] hyperscalers who want black black wells.

[18:08] Nvidia has so much of TSMC unlock that

[18:12] they just need to keep kind of making

[18:13] little chopped up versions of Blackwell

[18:16] and they could just keep printing money

[18:17] for now. Uh we got um okay some talk

[18:21] about rendering here that's fine.

[18:23] Omniverse autonomous driving at scale.

[18:27] Uh Hyundai Motor and Kia next generation

[18:29] autonomous driving built on Hyperion

[18:31] platform along with the expanded

[18:33] partnership with Uber. I honestly think

[18:36] like people so underpric this. This is

[18:39] so valuable. Uh you know it's going to

[18:42] be a like even Wall Street is still

[18:44] underpricing it. I saw a chart this

[18:46] morning on what they think revenue

[18:47] growth is going to be for autonomous uh

[18:51] driving for Nvidia. I actually have it

[18:53] right here. And uh I mean in my opinion

[18:56] this is this is a stupid forecast. Like

[18:58] I think it's going to be way higher than

[19:00] this. They actually think QCOM can get

[19:02] more automotive revenue than Nvidia. You

[19:05] know QCOM expanding from like 1.3

[19:08] billion to 3.3ish somewhere around

[19:10] there. Uh so I mean that's pretty

[19:12] impressive. uh in Nvidia only going from

[19:16] you know about what um actually no QCOM

[19:20] going from lower QCOM going from like

[19:22] 600 ah you got to figure you you look at

[19:25] the chart yourself and figure it out

[19:27] yourself the point is they expect QCOM

[19:29] to move faster I can't think about this

[19:30] live because I want to focus on

[19:32] continuing to get through this uh BYD

[19:36] Nissan are building level four ready

[19:38] vehicles on the Hyperion platform this

[19:40] is so smart and the Chinese are so good

[19:43] at manufacturing. This is so smart.

[19:46] CUDA. Oh, oh, oh, oh. This is huge for

[19:50] um this 6G thing. This like Marll is all

[19:54] over this, by the way. Jensen, Marll,

[19:58] um 6G, even 5G base stations. Anytime

[20:02] you hear base stations, you want to

[20:03] think about this. Basically, think about

[20:05] it this way. You know how Apple's like,

[20:07] "Oh, we want you to do ondevice AI,

[20:09] right? Yeah, that's cool. But what what

[20:12] we really want is really fast ondevice

[20:15] AI that can also coordinate with your

[20:19] company's servers or base stations or

[20:22] you know basically over a five or 6G

[20:24] network. Uh and and Marll's got uh you

[20:26] know there's like a call option in Marll

[20:28] for that technology. It's pretty

[20:30] exciting. Uh not to be confused with

[20:32] Marvel superheroes. You know, I I say

[20:34] when Max hasn't had enough food that he

[20:37] turns into the Hulk. And so when he

[20:40] starts getting fussy, I tell him, "Hey,

[20:41] you need to eat something. You're

[20:42] turning green, buddy." And he actually

[20:44] laughs over it. Uh but it's true. He

[20:47] turns into a little Hulk. It's just

[20:48] like, you know, the gamma radiation is

[20:51] taking him over. Accounts receivable

[20:53] pretty stable actually compared to last

[20:55] year. A lot of people dunked uh on on uh

[20:58] Nvidia last year because of this massive

[21:00] boost in accounts receivable. This is

[21:02] really stabilized here. So, pretty

[21:04] consistent. Uh, we've got uh really cash

[21:07] and marketables here of about $50

[21:09] billion sitting around plus oh, equity

[21:12] securities on that as well. So, I got

[21:14] $80 billion plus accounts receivable. I

[21:17] got $120 billion. I got bills to pay of

[21:20] about 44. Big deal, dude. I have enough.

[21:23] I mean, my accounts receivable could pay

[21:24] that and I don't even have to touch my

[21:25] cash. So, they're totally fine on bills

[21:28] to pay. They have virtually no long-term

[21:30] debt. I mean, I've got lease

[21:32] liabilities. I don't even usually count

[21:34] those. I've got 9 plus 7 over here. I

[21:37] got about 16 long-term. These people

[21:39] fart $16 billion.

[21:42] Uh I know that sounds just like crazy,

[21:45] but this is this is a a big AI winner.

[21:49] Uh and it blows my mind that, you know,

[21:52] a company like this could actually be

[21:53] down on such a good beat. But it's not

[21:56] surprising. A because we have a line and

[21:59] you know even the last time we broke out

[22:01] of 198 we had to retrace to it. So the

[22:04] line's important but I wouldn't be

[22:07] surprised that you know as we get closer

[22:08] to the SpaceX IPO we could break through

[22:10] this line and then we'll push through

[22:12] 255 and and then 295 will be the big

[22:15] test. Uh because that's when you get to

[22:17] breaking through 300, right? Uh but uh

[22:20] it'll take some time but I think it'll

[22:22] happen between now and the IPOs. SpaceX,

[22:26] OpenAI, Claude, they'll make it happen

[22:29] this year. The problem is those IPOs

[22:32] could end up marking the top of the

[22:33] market. Uh, you know, once once all of

[22:36] those guys go down and they've drained

[22:38] everybody of funds, you're going to have

[22:40] big problems. And so, a canary that I'm

[22:44] watching in the coal mine is Cerebrus.

[22:46] We've talked about that quite a bit. And

[22:48] also Coreweave. You know, Corweave's

[22:51] been trying to get back, but you could

[22:54] see, look at this. I I kid you not,

[22:56] rejected at the line. Again, nobody

[22:59] wants to hear about Kevin's lines. I

[23:00] mean, I guess course members do. They

[23:02] like Kevin's lines. Uh, but it's pretty

[23:04] remarkable. So, very, very, very, very,

[23:07] uh, impressive earnings for uh, Nvidia.

[23:11] Uh, so absolutely fantastic.

[23:14] Uh, so, uh, Scott is asking about Nvidia

[23:17] pulling back spending on OpenAI deal.

[23:19] Um, well, it's it's a little different.

[23:22] So, Jensen has said he doesn't want to

[23:26] invest more into OpenAI because they're

[23:29] going to go public. That's sort of his

[23:30] excuse. I actually think he just doesn't

[23:33] want to come across as a shill for one

[23:35] company. He doesn't want to pull like a

[23:36] soft bank, right, and only shill for

[23:39] open AI because he wants like he

[23:42] realizes Anthropic is killing it. He

[23:44] wants their business too. And what did

[23:46] Anthropic just do? Anthropic just leased

[23:48] a crapload of data center compute

[23:50] capacity with XAI, you know, inside of

[23:54] SpaceX. And guess what? Elon spends

[23:56] money on Nvidia chips.

[23:59] So, you know, it's it's actually uh it's

[24:01] pretty impressive. Uh oh, I got an

[24:03] update here. Anthropic expects a 130%

[24:07] revenue surge to 10.9 billion in the

[24:09] June quarter. Holy moly. And its first

[24:13] operating profit. Wow.

[24:17] Wow. That would be crazy if that's true.

[24:19] They generated 4.8 billion in the first

[24:21] quarter. Operating profit of 559 million

[24:25] in the June quarter. Whoa,

[24:28] dude. That should pump up the entire

[24:30] server se honestly. That should that

[24:33] alone should give you green candlesticks

[24:34] on Nvidia right now that Anthropic is

[24:37] potentially turning profitable. That's

[24:40] huge

[24:42] huge news. Uh that's that's actually a

[24:46] really wild update. Wow, that's almost

[24:48] worth its own video. Anyway, uh this is

[24:51] all about Nvidia earnings here. Thank

[24:52] you so much for coming to the Nvidia

[24:54] earnings. Maybe we could do some more

[24:55] live streams. You want to chat more, do

[24:56] some more fundamental analysis, make

[24:58] sure you join me. Meet Kevin.com. Use

[25:00] the Memorial Day coupon code. I love you

[25:01] all. We were live with course members

[25:03] for like an hour this morning. I love

[25:04] bringing value to everybody and we'll

[25:06] keep bringing analysis. Thanks so much

[25:07] for being here.