Welcome back to another market closing live stream. It's been a minute since we've done one of these. We've got Nvidia coming out in under five minutes here. Pretty exciting.

Uh Nvidia Actually had a little bit of a positive move into the close. uh, which is exciting oh and uh, sets. uh sets the stage up for a little bit more. uh.

entertainment for when these earnings actually, uh, come out. uh, earnings are expected. Uh, soon closing bell within four minutes and then uh, Market expectations for NVIDIA and snowflake? Uh, shortly thereafter we're looking at uh Nvidia today. Uh, at? um, 4 20.

Actually, so you've got snowflake. We'll go through first. We'll probably look at apps and UI path as well. You've got Elf Elf.

Beauty So we'll go through some of these earnings first. Uh, you've got about 20 minutes after the hour that we'll be able to go through some of these other earnings. and then we'll be, uh, anticipating Nvidia A lot of a lot of excitement for NVIDIA all obviously I Expect most of Nvidia's enthusiasm to be based on the forward guidance I'm I'm a big fan of Nvidia I Will say personally I hate playing earnings. but I am short-term uh, bearish at uh at.

You know going into this earning cycle here. Uh, long-term bullish on it. So I'm a big fan of long-term exposure to it personally. I Kind of hope it falls just so we can buy some more of it because I love it that much.

So so I Know that's always sort of like a weird position to be in because like, you're a fan of the company, but you're kind of like I I wanted a better price? It's a little Rich right now, you're trading at somewhere on a 2.7 PEG ratio? That's a lot. I mean you're trading at almost uh, you know, 60 to 70 percent higher on a valuation basis than where I'd like to be. I'd rather see this somewhere around 200 bucks 225. It's probably not going to go in that direction.

Uh, but we'll see. You know I mean uh, I think this? I think there's unfortunately though, a lot of this, uh, this hype and and enthusiasm around that. Oh, because AI launched you know, just within last month. All of a sudden you know orders are going to go through the roof.

Maybe that's the case, but I I Don't know if I'm convinced of that. Uh, so we'll see I mean this is this is the first quarter post the release of like Bard and open AI So and we know they've been used like crazy. I'm a big fan of AI I'm releasing an AI productivity uh course. So rather than just like here's AI news or here plugin, we're just gonna go.

Here's how you can actually use AI to help you be more efficient in your job, How to make more money, How to provide more value to your boss? uh, and to the company that you work for. You know how to make sure you don't get laid off basically. Uh, so I'm very excited about uh AI So big, big fan? Uh I Feel bad being short-term bearish. but I Just don't know how this this hype could so quickly translate into sales.

Who knows? Maybe it will. Uh, but we're about to find out. So it, and it'll be us. Uh, the start of, uh, the start of something for sure.

So uh, you can see Nvidia here actually ran up to about 305.. Look at this crazy run right here. Uh, in just the last uh hour of the trading day. Really unexpected, especially since the stock basically did nothing all day going into earnings.

and then all of a sudden you just get that this roller coaster laddering up. uh, you did see that in the NASDAQ as well. The NASDAQ did drop a little bit after that Nvidia didn't Nvidia held it. Uh.

Tesla was down substantially more earlier today, down as much as nearly four percent at one point. Looks like it's going to end the day right around a 160. Uh. to the downside: a lot of debt ceiling woes right now Bed Bath and Beyond up seven down.

Uh, 34. Ocujan expressed down 17. Abercrombie's doing well. Let's go ahead and get the bell time.

Higher questions like that, we shall see. there's the Bell as we counted down to Nvidia coming up in just a few minutes in overtime. and for that, I'll send it to Morgan and John There it is. all right we are once again.

Oh look how red that is. Oh boy. Okay for I'm gonna put on screen 124 Nvidia That is the expectation. A lot of people very very enthusiastic.

Now about a video. Uh, but first, we're going to have to get through some other earnings. So the other earnings that we're going to go through, we're going to go through snow Snow Actually deemed to be one of those potential AI plays for Big Data Analysis: One of your more Ogai plays: Uh, you've got uh Elf A Beauty the Cosmetic sector Ulta Beauty. These these companies have absolutely been killing it.

There's actually a thesis that maybe they've been killing it too much that, uh, potentially these these were Staples that people ran into and uh, people are going to walk out of these uh, once. Uh, once the realization comes that maybe, uh, people would prefer to invest in uh Technologies or or other stocks as opposed to Simply uh, beauty products, we'll see. Uh, the beauty segment has been doing extremely well and uh, so far there's been no sign of stopping it. uh, apps is uh, also another software play.

We'll have this up Uipath. there's another AI uh play for you as well. So so a lot of uh uh, AI related topics. Today you've got uh American Eagle reporting.

We did have Abercrombie this morning that killed it. So we'll see what American Eagle does. Let's take your AEO Red Robin gourmet burgers. That'll be somewhat interesting from maybe an inflation and a consumer point of view since a lot of Red Robins seem to be at or in uh, or you know, like close to malls and I always find that very interesting.

Retail sales in April obviously were up so there's a lot of enthusiasm about the consumer continuing to spend money. People are asking hey man, Kevin like when's it going to zoom We're gonna stop spending money so we can finally get this recession over with and the answer seems to be no, uh as in we have a no idea and B uh, consumer savings. Growing up, people are spending more money now. Uh, apps Digital Turbine is implied to be moving about 14.6 after earnings.

Elf Beauty is expecting to move 10.1 after earnings. Snowflake is expecting to move 8.4 percent after earnings American Eagle 10.8 after moving after earnings uipath 10 after earnings. Uh, so a lot of uh, expectations here Nvidia actually is expected to move the least. only about four percent after earnings.

So you're looking at uh, uh, somewhere around. let's see here the exact estimate I'll pull that up. So the historic movement for NVIDIA after earnings comes in at 5.72 We're looking at 4.7 on the implied now. and remember when it comes to Nvidia you're looking for an EPS adjusted of 92 cents Gap 61 cents Revenue 6.52 Billies.

So see what happens to Nvidia uh Nvidia is uh, you know something that in in the fund that I manage so uh, it's it's a position in there I'd like to increase my position to it, but it's very difficult to increase at this valuation. So uh uh yeah. Anywho, so uh, Snowflake Elf Digital Turbine Uipath American Eagle Red Robin in video those will be the ones we go through and then we are about 17 16 minutes away now from Nvidia so we'll see what happens. Somebody here in the chat says just went all in on Nvidia yoix uh hey well you know even though I think you're being facetious uh yeah I wish you the best.

Big fan of everybody uh everybody winning uh and uh hey look if if Nvidia does well, it's great for for the fund. If it doesn't do well, then it'll give us an opportunity to uh, add to it later uh and increase our allocation to it so we'll see what happens. Uh, excited. We're about 30 seconds away from our first earnings releases so we'll see what happens here.

Uh, do keep in mind at three at two PM we'll get the Nvidia earnings call and at 3 P.M we'll have the Elon Musk and Ron DeSantis live uh stream on the presidential announcement for Ron DeSantis Ronnie Ronnie D Uh yeah. Well, the price to earnings ratio is high. It's like 68 on a forward basis. You know you don't want to look backwards because uh, the you know, everybody was in a hole last, uh, last year.

But but yeah, I mean it's still high even looking forward. So yes, in videos, it's quite Rich right now and again I Don't know if that's really actually translated yet into real uh earnings I mean I I Highly doubt it, but all it's going to take is really positive guidance I mean Jensen If you're listening right now and you come out and tell us, hey man, we're raising our full year guidance, 20, this thing's gonna Moon All right. Uh. Digital Turbine out Fourth Quarter adjusted Ebitom misses Adjusted Ebitda comes in at 23.1 mil.

The expectation was 28.3 Um. Elf Beauty Oh my. God Massive. uh, massive massive beat.

This is really good 187.4 versus the estimate of 156.2 million dollars. Very large beat right there. That's almost a 20 beat adjusted. EPS Coming in at 42 cents versus 19 cents.

An absolutely incredible beat right there. Very good. Very good beat on Elf. A Snowflake beats Product Rev: 590.1 Estimate: 571.9 Uh, snow, that's from product Rev Uh Revenue In total coming in at 623.6 the estimate was 609.

That's a double beat on Rev Second quarter Product revenue forecast Downgraded: downgraded on the product forecast Q2 Product Rev: Expected to be 622.5 at the midpoint, expectation was 646.3 That's a decline uh operating margin uh coming in adjusted for the second quarter, expected to be only two percent. Uh, uh, that's interesting. Uh, the fiscal year operating margin to be five percent. They saw six percent.

So if like, now, plunging in the after hours. uh, product rep. This forecast for Q2 looks like it's gonna be a little bumpy Q1b, but the forecast for Q2 not that great. Uh, not that great.

Uh, Snowflake now down 12.5 to 13 here. Elf should be doing well. Elf should Skyrocket it's only up five percent. I'm surprised the implied was about a 12 uh 10 movement.

Uh, Snowflake is taking that 10 to Heart dropping a full 12 and a half percent right here. Still waiting for NVIDIA though Nvidia probably dropping and softening a little bit after the snowflake here. And then let's see what we got for Uipath: Uipath actually up four percent, so it looks like you had some low expectations for UI Path: Let's go. Uh, continue looking here.

Uh, product rev for the fiscal year expected to be 2.6 billion. That is less than the 2.71 Wall Street estimate and uh company forecast f up five percent. Digital Turbine Apps drops 11 on disappointing Q1 view UI Path: uh I Actually, don't have Uipath yet. Uh, Uipath this doesn't appear to be out yet.

It was apps that we went through apps again their uh Q4 net revenue slightly beat, but they're adjusted ebitda missed and then they had a disappointing forecast a midpoint view of 142.5 mil and the estimate was 148.6 waiting for American Eagle Red Robin comes in with adjusted EPS of 25 cents. Wow, they beat. They were expecting to lose 63 cents. they came in with 25 cents.

That's a very nice beat. Comp sales of 8.6 Holy smokes, there's no recession at Red Robin Yeah, um no oh my. God I can't do that I used to work at UH Red Robin Uh, suckers up 8.7 right now UI path sitting roughly flat at the moment Elf Beauty up 9.9 Snowflake still down 12.5-ish percent right now Nvidia trying to drop down about one percent in the after hours as we wait for NVIDIA you are also waiting for American Eagle And of course Nvidia will be a big one coming out soon. Uh, remember.

Also another thing happening soon: June 1st the release of the AI segments of the Making More Money course. it's actually an extremely affordable uh course to get into, you have lifetime access to fundamental analysis as well. Every day a lot of people just 2x play them back after we do the live streams. We've got thousands of people watching my fundamental analysis every single day, thousands of people watching the fundamental analysis.

and I think they come back every day because they love it. I think they think it's good and that's my goal is to provide a lot of extra value. uh there. so hopefully we see you there.

So and then you could see the same videos you can see the full Archive of all the live streams and past fundamental analysis. Which is kind of cool because you can kind of type in like okay, show me your PayPal analysis. Boom, there it is. So take a look at that, you get that those live streams and live stream access as well even in the making money.

Uh, course with the AI lectures. Okay, so Snowflake. Uh, let's see here, we've got Snowflake. Seas Uh, the physical forward year up 34 in terms of revenue from last year.

However, again, that wasn't as good as the market wanted to see. The Uh Elf forecast actually beats L Forecast Uh, coming in at a midpoint. Oh my. God Elf Beauty uh forecast Gee Lord is uh 712 million.

The estimate was 637 million that is. That's somewhere around the 13 beat on net sales. That's really impressive. Uh, so so these these Beauty companies, it's just nuts.

Uh Red Robin sees uh, 75 mil of adjusted ebitda for the year finally going profitable again. Oh, forecast. Uh. comp sales only two to four percent.

That shows you that slowing inflation that we're starting to see at some of the companies. Uh Elf? Beauty Now up only about eight and a half percent snowflake dropping more down 13. Uh Nvidia Down about half percent as we wait for NVIDIA Red Robin Up 14 on that guy to full year profitability. That's actually really bullish for cheesecake both cheesecake and Red Robin have become, uh, non-profits Dare I say because they've been losing money? Uh, the next? uh.

presentation for uh, oh, no. cheesecake already reported? Uh, they already reported May 10th. Never mind them. So uh, but that's overall bullish for the restaurant industry.

Wow, that's a big shift there. Uh, Uipath C's annualized recurring revenue of uh 1.3 bill? That's fantastic. Q2 Revenue Coming in? Uh, slightly below expectations. Fine, and let's take a brief look and just look at.

gosh, that Elf Beauty B is great. Uh, let's go to digital. Uh. turbine.

uh. apps. All right? So let's take a brief look at this while we wait for NVIDIA Here we've got uh, mobile growth, growth and awareness? uh interface? Support Services Brands that use them like Lego Apps that use them like Spotify Uber Uh, Angry Birds You can see this just I'm just going through their website right now. Nothing nothing special here.

Uh, let's see here. So this is, uh, you'd probably have to be a little bit more of a an engineer to understand this a little bit better. Uh, let me see here. You know what you could do.

You know an easy way to understand this company without being an engineer. Watch: I'll show you how to do this. Okay, ready for this. So you're gonna go over here to the annual reports for SEC filings and this is where they have to explain their company for idiots like me.

All right. So we're gonna scroll over to what the business is. Scroll, scroll scroll. Did I already go past it? Yeah, I Already did.

Oh wow. Okay, here we go business. Digital Turbine through its subsidiaries, is a leading independent mobile growth platform that levels up the landscape for advertisers. Publishers carriers, device, original equipment, manufacturers, oems, and companies offering end-to-end Solutions leveraging proprietary technology good Lord I Thought this would be like easier.

Uh, so so some something for user basically apps. Okay, they're gonna help your apps get more engagement, function better and coordinate better with advertisers. Okay, interesting, they've acquired companies like Ad Colony Uh, end-to-end solutions for mobile branding, advertising monetization. Uh, and then they go through some of the different brands right here.

Fascinating. Uh, yeah. I mean it's it's not a company I invest in I Don't know terribly much about it, but it is interesting. Uh, to me.

So I mean we'll do a little bit more study on that six minutes to go for the in video results. Those are expected to be a pretty big old one as Nvidia bottomed I Think technically Nvidia is a bottom around that 165 level. It's actually a tiny bit below that right now at 164. but I think that's a pretty pretty.

It's not really a support, it's acting like a resistance right now. But I think that we should be right back on top of that pretty soon. Uh, however, it'll depend what happens in housing. Yes, uh, this beat on Red Robin uh is probably good for uh Dave and Buster's absolutely completely agree with you.

More consumer spending Great for Dave and Busters Actually, we should go to Dave and Busters just do do a little bit of surveying because they're sitting at 34 bucks. I mean year to day Dave and Buster's down four percent. One year it's only up one percent. so it's really done nothing.

16 uh in the past five years is down 60 Okay Kevin Women buying beauty products work on site ramping up. One main reason for this performance. With all Beauty companies, that's a good point. That's a good point.

Let's see here also some return to work. Yep, Yep, very good point. Uh, let's see here once: 120 is NVIDIA So much hate against Nvidia always do the opposite of what the market thinks. really.

where are you seeing Hate against Nvidia I actually love Nvidia I I'm surprised there's hate against it. Oh I guess maybe the valuation? Yeah, a lot of people fussy about the valuation for NVIDIA that's true. Uh I'm actually like I really think it's a phenomenal company? uh and I I feel very conflicted because I'm like I I want a better price on it? Uh I just uh. like my cost basis on this I had a 500 000 lot in video.

My cost base is on. it was like 175 so maybe 176 somewhere around there. So it was like Yay Here's like 200 000 sitting around in profits which was great. so like thank you Nvidia you know I I owe you.

That's awesome but uh, you know I I want more shares? So anyway, uh American Eagle just posted adjusted EPS Coming in at expectation: 17 cents, 17 17 cents net revenue coming in at 1.08 Bill the estimate was 1.07 Billy American Eagle uh q1 EPS Nine cents versus 16 year over year. Okay, cool. um oh, Apps drops 20 post market. Now is that true? Wow yeah.

Red Red Robin up 13 percent? Yeah. Digital Turbine Wow. look at that. Straight down: 20.5 Snowflake down 12 up 0.6 One of the big issues and I've mentioned this many times on the channel so I don't want to sound redundant.

but I'm going to say it because I suspect there are some people who have not heard me say it. One of the big problems with AI is we do not yet know which software company is going to win. We just don't know and we're not going to know that for a very long time and that's scary to me. I'm scared about soft investing in software companies for AI Uh, because I'm I'm not convinced that uh, all of these software companies are are going to win I think uh, the few best software companies are going to win and uh, I'm not convinced that uh, Google or Microsoft or whatever are going to be a part of that.

uh I mean to some extent they will be, but maybe not as much as people hope. Uh, same thing for snowflake or apps or whatever all these software companies. it's a tough bet for me. I think a much easier bet is actually quite frankly Nvidia But the problem is, it's already so rich you know Nvidia was something you wanted to buy last winter which is when I bought it.

Of course that's when everybody on the internet was like oh my God chips are doing so bad. why are you so concentrated in chips Kevin you're so dumb it's like okay, whatever. thank you. This is that's why I like being contrarian, but when everybody else is telling me what I'm doing is stupid, usually I feel better.

which is it's tough because psychologically, you know people walk around and they just want to poop on your ideas all the time and then sometimes it makes it hard. Yeah, okay so waiting for NVIDIA now uh Nvidia is flat uh in the post Market uh we've got it up. we we are ready, it's coming. Uh, it's gonna be pretty exciting and that's one thing that as Elon Musk says is guaranteed is excitement.

Uh, do keep in mind something that could hurt Nvidia in the short term as well as China. You know they just oh, they just gave you a warning in the Financial Times about Nvidia I didn't even put the pieces of the puzzle together Jensen Just came out and complained in the Financial Times about China and that if we have too many restrictions on China uh, we're going to end up hurting Nvidia sales and they're going to sit. They're going to end up sitting on on too much revenue or sorry, too much product. So that's actually potentially a little bit of a leading warning.

Uh, uh. hold on one sec. Uh, a little bit of a leading warning. Uh, that.

Uh, you know, maybe we're going to see a miss here because of China That's interesting. Hadn't even thought about that, but it would make a lot of sense. Uh, the timing of that article or this. unless they just come out with this fantastic and great uh report and then it doesn't really matter.

But um, wow. Okay, well we shall see. We shall see. Uh, report.

Now about one minute away. very exciting. One minute to go for NVIDIA. All right, let me see if I can pull this up by the way.

So while we wait here, uh, we have about 30 seconds to go before we should start seeing some of these numbers. and uh, in the meantime, I have here we go. This button. if I press this button, it sure.

Yeah, let's go. I Got it. Got the iPhone up on screen here see ship Wars with China risk enormous damage to U.S Tech says the CEO of Nvidia CEO of Nvidia Uh here talking about uh speaking to the financial time Jensen Hong said U.S Export controls introduced by the Biden Administration to slow Chinese Semiconductor manufacturing had left Nvidia with our hands tied behind our backs. This was just posted today just today.

That's crazy. So uh I don't know I don't know. Uh, it's gonna be interesting. Can it be interesting for sure? Here we go.

Uh Okay, here comes. Okay. Oh Revenue beats 7.19 bill. That's a beat.

Uh EPS adjusted EPS Beats Uh. Margin beats everything beat. Wow. Okay, here we go: uh.

Data Center: Revenue comes in at 4.28 billion. The estimate was 3.91 billion Gaming Revenue even Gaming Revenue beat Oh my gosh, that's insane. Gaming beat 2.24 billion. Congratulations to the Nvidia shareholders.

Oh wow uh okay so oh my. God the explosion in forecast. Holy crap it's so good. Oh my.

God The second quarter. That's where the money is coming from. Listen to this. The estimate for Q2 was 7.18 billion Second Quarter Revenue Expected to be 11 billion dollars.

Holy crap dude, this suckers get a moon. Uh, this is absolutely insane. Uh, it's up six percent right now. Uh, 325.

They're saying they're quote significantly, increasing supply for data centers. Uh, they? uh. let's see here. Gross margin beat: 66.8 There's nothing not to like here.

This is a fantastic report. Investor Relations: Nvidia Let's grab it here. This is a really good report. Wow, this just blows it out of the water.

which is so crazy with the timing of their Financial Times crap. Okay, let's get their press release coming up right now. Gone by going through some of the other numbers here, this is a really good one. Let's see here: Jump this over there.

We go okay. grabbing some of the other data here Nvidia Up now nine percent after that Q2 Revenue that Q2 Revenue increase is insane. Holy crap. Nvidia That is insane.

So the growth numbers for NVIDIA are going to get turned upside down. In other words, like like they're probably way too low. Uh wow, that is. That's an explosion.

So you've got uh adjusted EPS Again, coming in at 1.09 cents. The estimate was for 92 cents. that? Outlook uh, sales. uh, sales coming in at 7.19 beating the 6.52 estimate.

Uh Nvidia Now up 12. Holy crapol rappers. That is one hell of a move. Good job! Nvidia This is why playing earnings sucks.

Uh, because you just never know. So uh, investor relations piece I Want the press release? Uh, come on, where is it to? iPad Come on. Over all right, Uh, Q1 there we go. Data Center Revenue That's their uh, popular H1 chip.

That's what everybody wants. It's a tensor. Uh, 10. What do they call a tensor unit? Processing Unit something like that tensor GPU Anyway, uh.

Data Center Revenue 4.28 Bill Second Quarter Revenue 11 Bill Plus or minus two percent. That's just so Wild versus the estimate of 7.15 it's CFO Commentary: First Quarter 2024 Okay, what else here in Video Quarterly? Okay, that's fine. Those are just statements and uh, q1? Uh yeah. all the everything just beat on that.

This is just a complete beat at every single level. So let's look at these numbers here. So let's see what we got. Balance Sheet: Looking at balance sheet, we've got.

uh, a 13.3 billion in cash? You've got. Uh, let's just write that down for a moment. 13.3 Billies in Cash Here We've got payables and bills of, uh, all of these. I'll write them down at 6.5 I'm taking the full current here.

We've got long-term debt of about Uh 11 ish. Let's see here. Plus 2 10, 11 11.6 Uh, not including lease leases here. So you've almost got enough cash to pay all of this down.

You've got a total debt set here of 17 Point Uh, sorry. 18.1 There we go. 18.1 That's you. had 13.3 abilities in Cash Plus You've got receivables of another four I Mean honestly, you're receivables and your, uh, cash and cash? pay off your debt and bills.

This is so good. Uh, that's going to put you at this is really impressive. Goodwill They kept Goodwill the same. Honestly, they could probably take a mark up on Goodwill You've got uh, net income coming in at 1.4 Uh, which is down substantially from last year.

I Mean you're down more than 50 percent from last year on net income stock based comp up about 40-ish percent. You've got net cash by operating activities 2.249 and uh, you've got plant property and Equipment expenses here of 500 mil? Uh, that's going to put you at about 1.7 of free cash flow. That's really impressive. 1.7 bill of free cash flow here from Nvidia These are absolutely credible numbers.

I Mean hats off to Nvidia These are really, really good. Uh, computer industry is going through two simultaneous transitions: accelerated Computing and generative. AI Uh, let's see what else we have here Nvidia is now up 14. Holy crap man, that's insane.

So then you've got uh, significantly increasing our supply to meet surging demand for the entire data center family of products. Oh wow. All right, good job. So then you've got um, uh, uh.

let's see here. Let's see. Let's see. Let's see.

let's see stock base comp and the following that hasn't changed much. These are just stock based comparisons here. Uh, he. That's fine.

Okay, let me look at we looked at the balance sheet. We look at net income. where's our costs cost of goods sold I Want to see margin because margin beat as well. Here it is.

Okay, so Revenue comes in at six bill which is less than the 7.6 previously. you've got gross profit. The margin bead expectations. Remember, the margin expectation was 66.6 Uh, and let's see here.

Uh uh. well. okay I don't know how they came up with their math I'll have to look at how they came up with their math because when I do this math, I'm actually getting uh, gross profit of about 63.3 compared to a 499 divided by 7 6, 43 of last year. So I'm actually getting a little bit of a decline in margin right here.

65.4 So that's what I'm seeing right now. a little bit of a decline. The uh, uh, what is this? The forecast here though was hmm. let's see here.

the forecast: Okay Margin: Gross Margin: Q1: Oh, it's adjusted gross margin 66.8 versus 66.6 Got it? Got it? Got it? So so their Gap gross margin actually fell. Uh, their uh, adjusted gross margin B That's when you, you know, start adding back in stock based comp and all that nonsense. So um, yeah, this is absolutely impressive. The earnings call starts in about 30 minutes.

You've got Rhonda Sanchez and Elon Musk In an hour and 30 minutes, you've got uh R D here. Uh, nice jump in R D. Actually, look at that. you're spending 1951 divided by 1466..

you're spending about 33 more in R D. And what's interesting is it doesn't seem like you're having to sell it much more. 563. Yeah, you're only spending about 11 more in advertising.

so you've got net income here. Uh, obviously a big decline in net income but we're Rising again. So this shows you how even with a high you know PEG ratio, these companies, these growth companies can just go crazy. This is a this is pretty impressive I Have to say I mean now you're looking at well I mean you have to just rewrite the company.

You have to re-underwrite it because the expectations for sales were 7.15 bill. That's going to jump up to 11 billion. I Mean your EPS is is probably going to Skyrocket here. I mean 11 Bill How much do they take to the bottom line? Here If their revenue is 60 51 I Mean you're gonna basically double that.

Uh, so let's double that. Let's double gross profit. For a moment. that's going to put you at 7 billion of gross profit.

Let's take out three of Opex That's going to put you at 4 billion. Uh, in the fourth quarter or in the second quarter. four bill of uh, net income potentially in Q4 Now all of a sorry Q2 Now you're going to beat last year's Q1 and so that's going to put your EPS at Oh man. Okay, four divided by uh, four thousand divided by 24.77 That's gonna put your EPS at a buck 61.

If I multiply that by 4. Uh, that's going to put you at 6.44 and the company is currently trading at Jesus that's at 350. Uh, 350 divided by 6.44 This puts you at a P a new P E ratio of 60 or 54 for 2023. And honestly, with that kind of growth, I mean your your EPS is exploding that it's actually not going to look that overvalued because I mean think about it for a moment.

If it was stupid, Box is in the way I know. Uh, let me just put this over here. Uh, the valuation is actually not going to look that extreme anymore with these sort of numbers. These sort of numbers are just so freaking insane.

Wow, this is really impressive. Uh uh, absolutely incredible. Uh, so you've got four bill of net income uh, potentially for Q2 that annualizes out to a 54p ratio I Wouldn't be surprised if their earnings expectation or their growth expectations are low right now for Wall Street Because let's just say let's say if growth is 30 year over year, which it could be more. But let's say for the next five years for next five years, the actual PEG ratio here is going to be uh, 54 divided by 30 is actually going to be 1.8 So your Peg's going to be a lot lower.

That's because of the new information of massive growth already getting priced in. already getting priced in. That's really impressive. Really, really impressive.

So uh, this sort of reiterates I think why chips are going to be more desirable than software. but boy, I don't think anybody was expecting that kind of beat. That's really impressive. So let me see what else.

Wall Street is saying that's very, very good. So uh, otherwise we're looking at and volatility and it's Ah That's such a kicker. Volatility was so low this morning on Nvidia that would have been the time to buy calls. We were talking about that in the course.

remember live this morning we're like you can't sell calls because the volatility is way too low. Like low volatility is perfect for YOLO calls. And it's crazy to think that Nvidia had low volatility. But it did.

It was very, very low. This is going to Skyrocket its volatility. Really impressive. So I I mean I can't say more about it.

Let's look at the beginning of their press release. Uh AMD now jumping off too. Yeah, nice that I believe. Okay, so let's see what else we have here: Nvidia Announces fourth quarter results.

Okay, quarterly revenue is down 21, but that's not the show stopper. Show stopper is what's about to happen. So Fiscal 2023 Revenue blah blah blah AI is here we go. AI is at an inflection point setting up for a broad adoption, Reaching into every industry for um, startups to Major Enterprises We are seeing accelerated interest in versatility and capabilities of Generative AI We are helping customers take advantage of the breakthroughs in generative Ai and language models Our new AI supercomputer with the H100 AI chips and its Transformer engine and Quantum 2 Network Fabric is in full production.

Gaming? No way. look at this. Gaming is recovering from The post-pandemic downturn Gamers Embracing the new Uh Ada infrastructure Gpos Gpus with AI Neural rendering Nvidia is partnering with with cloud service providers for AI as a service. This is why it's like chips instead of instead of the software.

but again, I mean the nobody was expecting these numbers. This is really incredible. Uh customers? uh hey, it's good for the chips and in my fund. you know we're pretty heavy on chips.

Customers will be able to uh engage every layer of Nvidia AI the AI Supercomputer acceleration Library software pre-chain generative uh models as a service. That's fantastic. Let's put a little uh line around this. Oops, let's do that a little smaller.

That's pretty cool. Okay, using their browser, they will be able to engage Nvidia Dgx AI super computers through uh, the Dgx cloud which is already offered on Oracle Azure Google Cloud and others. Zoom AI model as a service layer Nvidia will offer Nemo and bio Nemo customizable AI models to Enterprise customers who want to build proprietary AI models, generative Am models and services for their businesses. Wow! 1.15 billion in share repurchases and cash dividends.

They just made a lot of money on those repurchases. Uh, we actually see that I want to see that on their cash flow statement because they are cash flow positive. We know that cash flow statement is right here there it is. Yep.

1.2 Billies and did they even borrow? I Don't think they needed to borrow anything. No, they didn't repay and they didn't borrow again. only they didn't need to. Uh, really impressive.

So what else do we have here? Okay, this fourth quarter, this is Data Center and Outlook Here's the Outlook Um, uh. let me see here. What? How is this different video Sees Q2 Revenue as 11 billion. Why does that say 11 billion and just say huh? Nvidia's outlook for the first quarter of fiscal 24.

Okay, what is this? Then Nvidia sees Q2 and am I at the wrong Am I at the old statement here. Oh damn it. Yeah. sorry.

How did I get the wrong? The old statement? Such an idiot that was the January one. It doesn't even make sense. Uh, it's the oh. Does this make sense? Oh now Nvidia can't complete the request because too many people are trying to download it.

Yeah. could not complete requests. Okay, I'll just save this. PDF Let's see how the difference is.

Oh well, at least we went through both of them now. Um, that's so annoying. but I will get to the bottom of this. Hold on.

Come on. That's why the margin maybe didn't line up. That makes sense. Come on in video, let me download it.

You uh. there we go. Got it. Save There we go.

Okay, stand by. Their earnings call starts in 23 minutes by the way. So share. Airdrop.

There we go. Okie dokie. So let's see here. Um, okay, here we go.

So let's look at their outlook here and let's just see what how this compares. So there we go. Okay, all right, perfect. So computer industry is going through two types simultaneous transitions.

This is the same thing they said in the last one: trillion dollars of installed Global Center Infrastructure will transition from general purpose to accelerated Computing As companies race to apply generative AI in every product, service or business data center family. H100s Grace CPUs Grace Hopper Superchip Quantum 400 Infiniband is in production, we're significantly increasing our supply to meet surging demand for them. Uh, Nvidia Returned 99 million in cash to shareholders? Uh, okay. good.

here's that margin beat. There we go. Okay, so compared to last year, down slightly, but actually up from uh, last quarter operating expenses, barely operating expense is actually falling. which is great.

Let me look at and I want to look at their individual segments as well here, but let's see how was their cash flow compared to the first quarter we had. That's the Gap reconciliation. We had cash flows from operating activities of Uh 2.9 Billies. We had a plant property equipment 248, so you're actually sitting at somewhere around 2.65 billion in free cash flow.

How does that compare to the last quarter? Since we've just did the last quarters analysis look at that, they went from 1.7 billion of free cash flow to 2.65 That's really good actually. I Kind of don't feel bad now that we did the prior one because it gives us that comparison. We've got bills to pay here of about 7.2 billies, but uh oh man, the cash has exploded. So you've got 7.2 billies here.

Long-term debt: 9.7 I'm going to add this together: 9.7 plus 7.26 plus, uh, 0.939 plus two. Uh, let's just call it 20 billion debt and bills. And then you have you basically have that again in cash and accounts receivables. not even having to touch inventory.

You basically cover that they did actually mark up Goodwill A little bit in this AI transition that's impressive you've got. Um, okay, let's look at the outlook here. Here's that: Outlook This is the insane bump Revenue Expected to be 11 billion plus or minus. It is such a rewrite.

Honestly, this is so impressive. I Mean, this is a really, really, really good rewrite right here. Um, wow. Revenue Expected to be 11 billion that is.

It's just so good. Gross margins. Whoa. They're expecting margins to go up as well.

Look at the forecast on margins potentially up to 70. Oh my. Lord You just can't ask for better reports. The comps are low.

Uh, the industry is changing. This is awesome. First quarter Revenue was a record 4.28 billion up from 14 a year ago. Launched four interface platforms Ada Nvidia Hopper Grace Hopper Processors Fine Google Cloud is the first cloud provider offering the new Nvidia L4 Tensor Core GPU Great good money for Uh Nvidia Here's the H100 Tensor Core GPU Uh and the companies using them.

This is what we talked about in the Nvidia report this morning. Amazon Web Services Google Cloud Azure Oracle They just partnered with Servicenow collaboration with Dell Uh Matronic I Mean this is insane. This is yeah. Wow.

Uh, okay. Gaming Revenue Down 38 from a year ago, but up 22 from the prior quarter for gaming GeForce RTX 4060 Gpus bringing advancements of the Uh Ada Lovelace architecture starting at 299. Uh, what else do we have here? Okay, so the fact that gaming is rising again is great. That's real.

That was unexpected too. First Quarter Rev: I mean all of this was unexpected. That's why it's rising this much so. First Quarter Revenue 295 Milli Down from 53 for uh, professional visualization, this is like your Omniverse uh, impressive.

Oh wow. look at Automotive First Quarter Automotive Revenue Up for 114 from the prior quarter, think about what you have at Uh Nvidia You literally have uh uh, this this amazingness of uh chips which is where you're gonna win in AI you have Automotive and you have gaming which is that in like a hole. it's always going to climb out of that hole. It's really incredible.

Uh okay, so Byd will use the Oren platform for Uh for their self-driving features basically their Adas platform and we are now 18 minutes away from the earnings. Call Here are the earnings you can see: Uh, down. What was that? like? 13 or so 7192 divided by eight Two Eight eight? Uh, down? about? Yep. 13 Cost of Revenue Uh, we saw the margins already.

r D moved up slightly. barely a movement on SG A, Uh, 83 cents of uh of eps here. So actually I could redo the math because we have 83. we could plug this into here.

If I go with 11 Bill let's do it together. Okay, we go 11 billies here. Let's take margin of 68, which it could be up to 70. That's going to bring your gross profit to 7.48 Then you're going to take out your operating which you're operating fell year over year.

So let's just call it three. Okay, and that should be plenty generous. That's going to actually put you at an income from operations of 4.48 4.48 This is the biggest rewrite I think I've ever seen on a company. This is insane and it's it's just so good.

4.48 Uh, 4.48 Net income to 4.48 4.48 Um, if I then divide this by shares Outstanding. 4.48 Uh, Four four eight, zero divided by Two Four nine? Oh, it's gonna put me at actually about 180 EPS for next quarter and If I multiply that by four just to annualize. Not that you should annualize because there are seasonalities to this 7.2 It's going to put me about 7.2 sitting now at good Lord 365 divided by 7.2 Oh my gosh, the forward PE is actually at at 365. the forward PE on Nvidia right now is 50.7 and 365.

Uh, if I take and if you go with the growth of 30 again, yeah, you're at 1.69 1.69 on a peg basis means you're actually Trading Uh, similar trading level to Tesla and end phase at Uh One, Six nine Peg based on new underwriting per insanely good guidance. Well, there you have it. There you have it. Uh, that is that is incredible.

Well I'm glad this is. uh, we have exposure to this in my fund. Uh, because this is going to move all of the chip stocks. Let me see, we've got so uh, Nvidia is up 19.

how's and AMD doesn't really hold a candle right now too. Uh Nvidia on the AI But yeah, yeah, amd's up 7.4 percent. Uh, you've got. uh, this is pushing NASDAQ up Tesla's only up.

Uh, you know, point four four percent here and afters. But yes again, software gets whacked where where chips win? uh Intel I think is probably still being left behind. Yeah, Intel Bare doesn't even move on this news So but yeah I mean other other chip stocks I mean you know, microns up maybe two percent. Let's see.

uh Applied Materials up about two percent, nobody's moving like Nvidia is. uh you know Microsoft Microsoft moved on this one point four percent goog moving 1.7 but I they're not going to be the ones that profit. they're the ones buying the chips. Wow Wow, that's incredible.

So what you would hope for. You know what you want to hope for some bad news in the morning on the debt ceiling? Then buy the freaking dip. If not that, there will be. it's up 19.

It would take quite a while to dip this thing. but wow yeah. the the idea of being able to add more to this at a discount that fell flat in its face that went uh, poopy's so freaking fast that idea. So happy for the exposure.

I have uh, you know, not as much as I once had. but that's okay. sometimes you take money away from the Vegas table. So um, so this is we have the earnings call coming up in 13 minutes.

Should we do the earnings call? Yeah, let's see how TSM is doing Tsmc TSM Taiwan Semiconductor manufacturer Wow. Five percent Dude. Oh my gosh, that's impressive. All of the chips.

They're killing it. I mean I'm I'm just blown away. It's so good. How's Asml doing? They should be doing well too.

Although they've got such a long backlog and they're only up to about 1.3 percent one one point one percent rather. So um, hear what's Uh, that's wow. Wow. Nvidia absolutely destroyed it.

Very good I have to give it to him. Very very good. So uh, what else? Well now what we're going to do is we're going to. we can wait for the earnings call and uh oops, don't know why that went black there for a sec.

Uh yeah, let's um, let's go for the Nvidia earnings call. See what we got here? Did I unplug that? Oh yeah, there it did. All right. Oh Ketoki.

Then Nvidia earnings call. Let's see what we have. Um yeah, nobody was expecting that movement either. The market was anticipating a 4.7 movement in the stock.

You literally got 19 percent. Okay, so um, let's listen for a moment into Doom burgers and then we'll get into this Kali uh uh. any any hour now this will actually turn on apparently I can't get Doom burgers? Whatever. All right, let's get set up for the call and yeah, this is a it's a reason absolutely to be envious uh of uh you know I mean they're whoever somebody wrote earlier I went all in on Nvidia that I don't know if they were serious, but uh, they're happy right now.

Congratulations go have a beer! Okay So uh, can I get this in here? let's see here. Oh yeah. okay. cool.

10 minutes, nine minutes ish for the earnings call waiting for this to uh come up over here. Uh, apparently my Doom Burger disappeared I will fix that and the Cnbc's on Commercial find it. So in the meantime, uh What uh, what commentary do you have sitting here waiting for a Tesla to one day? Zoom Like that? Oh yeah, good old Tesla don't worry, that'll never happen. Oh I mean uh, ever, you know.

But the thing, the thing is good companies. they all get their turn right. You have to think about it that way that they all get their turn. Great companies that grow and innovate with the times they all get their turn.

and uh, whether it happens slowly or suddenly and all at once like this is, uh, foreign. So let's see here. Uh, eight minutes to the call see what we got here In the meantime, listening in the American and Saudi astronauts of startup Axiom's second all private crew to the International Space Station for uh in and in total eight-day Mission and bankrupt Virgin Orbit shutting down this week as its assets and Tech are sold to companies including Rocket Lab. Joining us now is NASA administrator Bill Nelson administrator Nelson Great to have you on the show.

I Do want to start with the future of human space flight between the 3.4 billion dollar contract. Does it have anything to do with Nvidia Because if it doesn't have anything to do with Nvidia I don't I don't really care it went I Want more? Moon So yeah, lots more people to space in a more meaningful way. Well, we're going back to the Moon in a different way this time. It's not just the US government, we're going Okay, he said, we're going back to the Moon That's all I needed to hear.

So uh again, the Nvidia earnings call. Seven and a half minutes to go. Uh and uh, we are going to listen to the call together. It's been a minute since we've actually done an earnings call together, so I'm excited about that.

We will, uh, get that call going here. uh I've already got it up so we'll go through all of this. We've gone through both of the statements for NVIDIA in just the last uh, 40 minutes here, 30 minutes, we've gone through both the uh Q4 report, their q1 report I'm sitting in the waiting room right now waiting for uh, the new Nvidia uh report or uh, earnings calls. so we'll go ahead and listen and analyze that together I Can't imagine it will be anything but bullish, but uh, we will see.

So this is what we will stand by for. That's right, all I needed to hear. he said we're He literally said the NASA guy Okay, the NASA guy literally said we are going back to the moon and then he even said in a different way this time he's obviously talking about a video. Oh the question is, do you take profits tomorrow? So I can't give you personalized Financial advice.

But let me explain my thesis. So my thinking is uh I would I personally want more of my exposure in uh, like an ETF style fund that has exposure to Nvidia uh and the reason for that is uh I I really want to? um, you know, let that thing ride for a long term inside the ETF wrapper. So that way if it really goes, you fork or whatever, you could potentially have an ETF manager trade it without. uh, potentially capital gains.

That's because an ETF manager can trade a stock without gain. So I try to get as much of my long-term investments into a longer hold ETFs because of those massive tax benefits which I really enjoy I Hate taxes I paid a lot of money in taxes. It's a huge amount of taxes. Uh, so I'm a big fan of that.

So like I I would not run from Nvidia by any means. The only thing that I would do personally is I would move allocation from uh from potentially Nvidia individually and put it into something that has high exposure to Nvidia an ETF or something. you know what's the Nasdaq's exposure? Let's see here. Uh QQQ top Holdings So if you look at the NASDAQ for example, the NASDAQ has 5.5 allocation to Nvidia That's pretty good and so you can invest in in this through uh, qqqm.

Qqqm will give you uh, some good exposure to the NASDAQ without uh, at very low fees. It's great. Um, and that's the same as really QQQ it's just the one that's not marketed. It's kind of a brilliant strategy they had.

That's the way they've been able to charge higher fees so the fee sensitive people move over to uh, the uh, the cheaper version whereas the not fee sensitive people stick in the expensive one and pay more fees for them. It's honestly brilliant. Okay waiting, waiting, waiting four more minutes to go. Four minutes till the call.

All right. how much do they pay in taxes and 20 into last year? I Think my tax bill for 2021 was like 11 million dollars. It was insane. Uh, that was a crazy time.

Okay Cool. So that's done. That's done. That's done all right.

We are waiting now for the Nvidia earnings call. Yep, um I Wouldn't be surprised that uh, you have some of the uh, some calm down at some point in the AI train. but I Have to say from a fundamental basis these numbers were a highly unexpected and B highly amazing. Really really good.

You just can't complain about these Nvidia fundies. uh that that if those numbers are true which we're going to hear more about in the earnings call in just a minute actually like two and a half minutes. Very very good. Very good, Very good.

All right standing by let me uh, see if in the meantime you can fix this. Give me one second here. let's see what we have. Oh what is this It is fine.

there's no problem there. then why is it not working I didn't know why it is not working I don't know, but that's okay. If I had a Dell everything would be working. Oh there we go.

Oh okay, they're a commercial. Let's try to get uh the Doom Burgers up got him. Since you're getting twins, will you be buying a bigger home? Hell nah. Why would we do that? Yeah Eric it's true.

the Nvidia stuff could just be getting started. You're not wrong. These numbers are so good. Oh I have way more than one year of net earnings invested into the stock market I don't know how you're getting that math.

Uh uh. sincerely yeah. the twins thing. yeah the twins thing is going to be really cool.

Anyone gonna do a running tally of how many times the presenters say AI ooh that's a good idea. that's a good question. um I mean obviously I think it's going to be in every single answer. Anything is going to be better than uh than your uh, your Zoom call.

The zoom call is a disaster. a64ai Joel thank you so much for being here unless it's Joelle I Know that's the more typically associated with girl version but I had a guy friend who's who preferred Joelle uh yeah, all right come on Nvidia um oh yeah. drinking game. Every time someone says hey, you know you'd have to you'd have to do like shots of like Bud Light You know, like two percent alcohol? uh to to not die That would be crazy.

The twins will be cool. Yeah Tesla Bottom three months after Nvidia So Tesla will be all-time high in three months maybe? Yeah? Max Already recovered. Where is that guy? Let me see if Okay, we're waiting for this. Nvidia call to start 80 minute now? Nope.

Still on Music Palantir moving up on this as well. That doesn't surprise me, just it just shows how real AI is. So follow the com. If Nvidia is doing well, it means everybody else is ordering, ordering, ordering.

It's gonna be a bigger capex for your uh um, what's it called your Googles and your Microsofts and that Okay, it'll be a question and answer session here we go. If you'd like to ask a question during this time, simply press the star key followed by the number one on your telephone keypad. If you'd like to withdraw your question, press Star One once again. thank you! So Mona Jankowski you may begin your conference.

Thank you! Good afternoon everyone and welcome to Nvidia's Conference Call for the first quarter of Fiscal 2024. with me today from Nvidia are Johnson Wong President and Chief Executive Officer and collect Crest Executive Vice President and Chief Financial Officer I'd like to remind you that our call is being webcast live on Nvidia's Investor relations website. The webcast will be available for replay until The conference call to discuss our financial results for the second quarter of Fiscal 2024.. the content of today's call is Nvidia's property.

It can be reproduced or transcribed without a prior written concerns. During this call, we may make forward living statements based on current expectations. These are particular number of significant risks and uncertainties and our actual results May differ materially. For a discussion of factors that could affect our future Financial Results in Business please refer to the disclosure in today's earnings release, our most recent forms 10K and 10q and the reports that we may file on Form 8K with the Securities and Exchange Commission All our statements are made as of today May 24, 2023 based on information currently available to us.

accept is required by law. We assume no obligation to update any such statements. During this call, we will discuss non-gap Financial measures We can find a Reconciliation of these non-get Financial measures to get financial measures in our CFO commentary which is posted on our website and with that, let me turn the call over to Colette Thanks Simona Q1 Revenue A 7.19 billion up 19 sequentially and down 13 year on year. Strong sequential growth was driven by Record Data Center Revenue with our gaming and professional visualization platforms emerging from Channel inventory Corrections Starting with Data Center, record revenue of 4.28 billion was up 18 sequentially and of 14 year on year on strong growth of our accelerated Computing platform worldwide.

Generative AI is driving exponential growth in compute requirements and a fast transition to Nvidia accelerated Computing which is the most versatile, most energy efficient, and the lowest TCO approach to train and deploy AI Generative AI drove significant upside in demand for our products, creating opportunities and broad-based Global growth across our markets. Let me give you some color across our three major customer categories: Cloud Service Providers or Csps, Consumer Internet Companies, and Enterprises First, Csps around the world are racing to deploy our Flagship Hopper and Ampere Architecture Gpus to meet the surge in interest from both Enterprise and consumer. AI applications for training and inference. Multiple Csps announce the availability of age 100 on their platforms, including private previews at Microsoft Azure Google cloud and Oracle Cloud infrastructure upcoming offerings at AWS and general availability at emerging GPU specialized Cloud providers like Core Weave and Lambda.

In addition to Enterprise AI adoption, these Csps are serving strong demand for A1 H100 from generative AI pioneers. Second, consumer Internet companies are also at the Forefront of adopting generative Ai and deep learning based recommendation systems driving strong growth. For example, Meta has now deployed its H100 powered brand Teton AI Supercomputer for its AI production and research teams. Third, Enterprise Demand for AI and accelerated Computing is strong.

We are seeing momentum in verticals such as Automotive Financial, Services Healthcare and Telecom where Ai and Accelerated Computing are quickly becoming integral to customers Innovation roadmaps and competitive positioning. For example, Bloomberg announced it has a 50 billion parameter model Bloomberg GPT to help with financial natural language processing tasks such as sentiment analysis named entity recognition, news classification, and question answering auto insurance company CCC Intelligence Solutions is using AI for estimating repairs and a T and T is working with us on AI to improve Fleet dispatches so their field technicians can better serve customers. among other Enterprise customers using Nvidia AI are Deloitte or Logistics and customer service and engine for drug Discovery and protein engineering. This quarter, we started shipping Dgx H100 our Hopper generation AI system which customers can deploy on-prem and with the launch of Dgx Cloud through our partnership with Microsoft Azure, Google cloud and Oracle Cloud infrastructure, we deliver the promise of Nvidia Dgx to customers from the cloud, whether custom.

Whether the customers deploy Dgx on-prem or via Dgx Cloud they get access to Nvidia AI software including Nvidia base command end-to-end AI Frameworks and pre-trained models provide them with a blueprint for building and operating. AI Spending our expertise across systems, algorithms, data processing, and training methods. we also announced Nvidia AI Foundations which are model Foundry services available on Djx cloud that enable businesses to build, refine and operate custom large language models and generative AI models trained with their own proprietary data created for Unique domain-specific tasks they include Nvidia Nemo for large language models, Nvidia Picasso for images, video, and 3D and in video bio Nemo for Life Sciences Beach Service has six elements: pre-trained models Frameworks for data processing and curation, proprietary knowledge base Vector Databases systems for fine tuning, aligning and Guard railing optimized inference engines and support from Nvidia experts to help Enterprises fine-tune models for their custom use cases. Servicenow a leading Enterprise Services platform, is an early adopter of Dgx Cloud, and Nemo they're developing custom large language models trained on data specifically for the Servicenow platform.

Our collaboration will let Servicenow create new Enterprise grade generative AI offerings for the thousands of Enterprises worldwide running from the Servicenow Platform, including for It departments, customer service teams, employees, and Developers generative. AI is also driving a stuck function increase in inference workbombs because if there's size and complexities, these workflows require acceleration. The latest Ml Perf Industry Benchmark released in April showed Nvidia's inference platforms deliver performance that is orders of magnitudes ahead of the industry with unmatched versatility across diverse workloads to help customers deploy generative AI applications of scale At GTC We announced four major new entrance platforms that Leverage The Nvidia AI Software Stack. These include L4 Tensor Core GPU for AI Video, L40 for Omniverse and Graphics Rendering H100 and VL for large language models and the Grace Hopper Superchip for Llms and also recommendation systems and Vector Databases.

Google Cloud is the first CSP to adopt our L4 inference platform with the launch of its G2 virtual machines for generative AI imprints and other workloads such as Google Cloud Dataproc, Google Alice Google Alpha fold and Google Cloud's immersive stream which render 3D and AR experiences. In addition, Google is integrating our Triton Inference server with Google Kubernetes engine and it's cloud-based Vertex AI platform in networking. We saw strong demand at both Csps and Enterprise customers for generative Ai and accelerated Computing which require high performance networking like Nvidia's Melanox Networking platforms demand relating to general purpose. CPU Infrastructure remains soft as generative AI applications grow in size and complexity.

High performance networks become essential for delivering accelerated Computing at data center scale to meet the enormous demands of both training and imprinting, Our 400 gig Quantum 2 Infiniband platform is the gold standard for AI dedicated infrastructure with broad adoption across major cloud and consumer internet platforms such as Microsoft Azure. With a combination of in-network computing technology and the industry's only end-to-end data center scale optimized software stack, customers routinely enjoy a 20 increase in throughput for their sizable infrastructure investment for multi-tenant cloud transitioning to support generative. AI Our high-speed Ethernet platform with Bluefield 3 Dpus and Spectrum 4 Ethernet switching offers the highest available ethernet. Network Performance Bluefield 3 is in production and has been adopted by multiple Hyperscale and CSP customers including Microsoft Azure, Oracle, Cloud Powerweave, Baidu and others.

We look forward to sharing more about our 400 gig Spectrum for Accelerated AI Networking platform next week at the Computex conference in Taiwan. Lastly, our Grace Data center CPU is sampling with customers at this week's International Supercomputing. Conference In Germany the University of Bristol announced a new supercomputer based on the Nvidia brace CPU Superchip which is 6X more energy efficient than the previous supercomputer. This adds to the growing momentum for Grace with both CPU Only and CPU GPU opportunities across Ai and cloud and super Computing applications becoming way of Bluefield 3 Grace and Grace Hopper Superchips will enable a new generation of super energy efficient accelerated data centers.

Now let's move to gaming. Gaming Revenue of 2.24 billion with up 22 sequentially and down 38 year on Year Strong Sequence of growth was driven by sales of the 40 series GeForce RTX Gpus for both notebooks and desktops. Overall and demand was solid and consistent with seasonality, demonstrating resilience against a challenging consumer spending backdrop. The GeForce RTX 40 series GPU laptops are off to a great start, featuring four Nvidia inventions: RTX Path Tracy Dlss 3 AI rendering reflex ultra low latency rendering and Max Q energy efficient Technologies They deliver tremendous gains in industrial design, performance and battery life for gamers and creators and like our desktop offerings.

40 Series Laptops support the Nvidia Studio platform of software Technologies including acceleration for Creative data science and Ai workflows and Omniverse giving content creators unmatched tools and capabilities in desktop. We ramped the RTX 4070, which joined the previously launched RTX 4090 4080 and the 4070 TI Gpus. The RTX 4070 is nearly 3x faster than the RTX 2070 and offers our large installed base is spectacular upgrade. Last