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Here’s a breakdown of the key data from the text regarding Morgan Stanley analyst Joseph Moore‘s outlook on Nvidia’s recent earnings report:
Overall Positive, but Sentiment is Catching Up: Moore believes nvidia’s earnings were a “very clean beat and raise quarter” (meaning they exceeded expectations and increased their forecast). However, the slight stock sell-off after hours suggests investor sentiment is starting to align with the company’s growth potential – meaning expectations are becoming more realistic.
AI Demand is Robust: Moore’s analysis supports the idea that demand for AI is strong and continuing to grow.nvidia’s forecast of $54 billion in sales for the third quarter (a $7 billion increase from Q2, or about 15% growth) demonstrates this.
China Impact: The sales forecast doesn’t include sales to China, which previously made up around 20% of Nvidia’s data centre revenue. This highlights the company’s ability to grow despite geopolitical challenges.
Undershipping Demand: Moore believes Nvidia is actually underestimating true demand, based on management commentary and Morgan Stanley’s research.
* Evidence of Strong Demand: The continued sales of Nvidia’s older “Hopper” architecture (launched in 2022) – even with the newer “Blackwell” system available – is a key indicator of intense demand and compute shortages.Customers are still buying older tech to meet their needs.
