Nvidia Earnings front and Center 💎

Is Nvidia the present, future and generational future? 🚀 Growth is still strong.

Does this look like Jensen Huang? Well it should.

Hello Everyone,

This is an issue for the week up to August 29th, and Nvidia just reported earnings yesterday. As the summer winds down you should expect more regular issues of this Newsletter.

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• Welcome to the 15th edition of Semiconductor Things™, where I seek to break down some of the news in the Semiconductor, AI chips and datacenter space globally to make it more accessible and easy to follow.

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Nvidia’s Earnings💎

With a race up past a $3 Trillion valuation, Nvidia is suddenly the world’s most important stock. The three previous quarters Nvidia reported growth of over 200%.

• On paper Earnings looked great: Nvidia's second-quarter earnings report exceeded expectations, with revenue reaching $30 billion, up 122% year-over-year and 15% quarter-over-quarter. But expectations have gotten very high for this name.

• For the current Quarter, Revenue is expected to be $32.5 billion, plus or minus 2%.

Financials:

Nvidia’s stock NVDA 0.00%↑ is up 161% so far in 2024. So it can slip this week and that wouldn’t really matter.

We’ll get back to this topic throughout today’s post. If you think what Nvidia has become, Jensen Huang’s sacrifices really do have some historical lift. Frankly, for the entire world. 🌍

🌍 Semiconductor Bits & Bites 📱

• Nvidia CEO Jensen Huang eased fears over the delay of Blackwell-architecture GPUs in a Bloomberg TV interview, saying: - Nvidia expects “billions of dollars of Blackwell revenues” in its 4th quarter (which ends in January) - “we will have a great year next year as well” - “we’re sampling Blackwell all over the world today” (provide sample chips for customers to try out) - Blackwell will start ramping in the 4th quarter, and “we’re going to have lots and lots of supply,” -There was a production issue, not an issue with the design of the Blackwell GPUs, as “there were no functional changes necessary.” Nvidia made some tweaks to improve production yields.

• Apple has ordered over 10% more iPhones than last year in a bet its 1st AI-iPhone will be a hit, Nikkei reports, citing unnamed iPhone supply chain sources in Asia, which have prepped enough components for 88 million to 90 million iPhones in the initial build. Last year's initial build was 80 million.

• TSMC’s entry into glass substrates competition with Intel and Samsung has prompted Taiwan chip equipment makers to form an alliance to develop machinery for the substrates, media report, noting glass substrates are necessary to help deal with heat given off by Nvidia’s AI chips. The alliance is called the E-core System Alliance of Glass Substrate Suppliers (translation). TSMC is also working on FOPLP (Fan-Out Panel Level Packaging) for Nvidia.

• South Korea’s SK Hynix aims to commercialize DDR5-based 96GB and 128GB CXL (Compute Express Link) 2.0 memory products in the 2nd half of this year to meet the ever-growing demands of AI applications, media report. CXL is an interconnect that links the CPU, GPU, memory to other components in a computing system. Using CXL on existing memory modules can more than double capacity.

🏆🎯💎 We’ll be dissecting Nvidia and their Earnings a lot more in this week’s post.

Nvidia’s Earnings💎 Story continued: