Serenity's Interpretation of NVIDIA's Financial Report: AI to Continue Soaring, Demand Shows No Sign of Slowing

BlockBeats News, August 27, Serenity published an article interpreting Nvidia's latest financial report. The company's quarterly revenue was $96.22 billion, higher than the market's expectation of about $92.17 billion; adjusted earnings per share were $2.22, exceeding the expected $2.09 to $2.10; data center revenue was $89 billion, above the expected $86.3 billion, with an adjusted gross margin of 75%, in line with expectations.

Specifically, revenue from hyperscale customers increased from $43.05 billion in the previous quarter to $48.71 billion. Serenity believes that the growth of custom ASICs has not hindered Nvidia's related businesses from accelerating. Nvidia's revenue guidance for the next quarter is $108 billion, higher than the market's expectation of about $104.2 billion, and this forecast does not include any revenue from China's data center computing business; the adjusted gross margin guidance is 74%, lower than the market's expectation of 75%, representing a relatively weaker part of this financial report.

Serenity points out that Nvidia's revenue has recently increased from $68.1 billion to $81.6 billion, $96.2 billion, and is expected to reach $108 billion next quarter, indicating that AI demand has not shown a significant slowdown. The company's procurement commitments have also increased from $119 billion in the previous quarter to $279 billion, mainly related to future years' storage chip procurement.

AI continues to accelerate, and Nvidia is evidently in a leading position, with no clear signs of demand slowing down. Given Nvidia's market value has exceeded $5 trillion, the current larger investment opportunities may come from its architecture and capacity decisions' impact on the supply chain, including CPOs, storage chips, and 800V power systems, rather than simply seeking pricing deviations of Nvidia's stock itself.

Nvidia expects a approximately 70% increase in revenue for the 2028 fiscal year, and this forecast is still based on a supply-constrained premise. It believes the significance of this statement may be higher than the performance exceeding expectations this quarter itself, as the market previously expected a growth rate of only 43.9%, and Nvidia's guidance this time constitutes a significant upward revision. Morgan Stanley's estimate for related capital expenditures in 2027 was about $1.2 trillion in June of this year, so Nvidia's $1.3 trillion figure implies a further upward revision of market expectations. It believes that segments in the supply chain with higher elasticity may benefit from the continued growth in AI infrastructure investment.