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Let's get to Yahoo Finance's Dan Howley now with the key takeaways from Nvidia's second quarter results. What do you make of them, Dan?
Yeah, Josh, obviously the data center is kind of the standout here, coming in with that 41.4 billion number, just short of expectations of a little more than 41.2 billion. As Dan Newman, the prior guest, said, gaming kind of standing out as a big kind of beat there with that 44.3 billion. I want to note something though in Collect Cress's CFO notes; she points out that data center compute—that's the chips themselves as part of the data center business revenue—declined 1% sequentially. Now, she says that was a result of a $4 billion reduction in H20 sales. So, you know, you're kind of taking that out of that data center. We don’t know how the estimates that had come forward how many of those took into account China data center sales or how many discounted them not being there for the quarter. But that I think is something to just keep in mind as we look at that data center. Obviously the stock off slightly more than three 3%. And, you know, I think the bigger part here is the EPS beat of the $1.5. I also want to point out that the forecast does not include any of that H20 China sales moving forward. That’s something that was very much in question. Would they start to include H20 again now that they’re able to sell it into China?
Yeah, that forecast is critical there Dan; you know it’s so it looks like the company is saying sales about 54 billion in that fiscal Q3 and that looks like um in line with consensus but maybe lower than some had had projected there.
Yeah, that’s been one of the big things for Nvidia obviously is the beat and raise. People looking to see how much further this can kind of stretch out and see we’re just talking about the big AI explosion with these huge hyper scalers. I think it’s also important to note that Colette Kress pointed out that now the sale of those that the revenue from those data center sales now 50% of approximately 50% of that is made up of sales to those big name companies those cloud service providers. We had seen prior to that that a little less than 50% in the prior quarter came from that source. So, you know just a a kind of potential uptick there in revenue coming from those companies. I think that’s something to keep in mind moving forward. And then again as you were pointing out that forecast not exactly what people maybe were hoping to see when it comes to Nvidia after being so used to this kind of beat and raise.
Yeah, for sure. The stock down about 3% right now. Dan, thank you so much.