When regular companies report quarterly earnings, investors peruse them, and the shares move up, down or sideways. When those earnings come from Nvidia, however, the financial world tilts on its axis. The chipmaker’s stock dipped on Wednesday even though it said that revenue and earnings roughly doubled, year on year. The only apparent wrinkle is that its forecast for next quarter’s revenue, at $37.
The interconnectedness is real: as Huang quipped on Wednesday, “almost every company in the world seems to be involved in our supply chain”. In the short term, Nvidia has the enviable benefits of both scale and scarcity. Supply constraints keep prices high, and the company says demand for its new Blackwell chips will exceed its expectations of “several billion dollars” in the current quarter.