24 August 2023
If you are covering Nvidia’s record sales, please find below a comment from Ben Barringer, equity research analyst at Quilter Cheviot:
“Despite concerns that we are in some sort of c.2000/01 tech bubble, Nvidia once again smashed estimates and delivered a set of results that shows it has no signs of slowing down. Revenues are up 100% thanks to strong demand in data centres and the cloud, and this is the important point about Nvidia – it is not just a chips business, but one that provides all the software and networking around them to ensure they talk to each other and provide customers with seamless technology.
“Nvidia is also getting well ahead of the competition. AMD has a similar networking service coming soon, but Nvidia is doing it in the here and now. Likewise with artificial intelligence, there is lots of hype, but Nvidia is one of the few companies to not just be talking about it but delivering it in what it does.
“Again, there was also concern around supply chains and whether Nvidia’s growth could be sustained, but these have held up and are increasing capacity into 2024. This all presents Nvidia with a really positive set up and with guidance also upgraded significantly, the tailwinds remain alive and present to keep pushing the stock higher.”
