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Nvidia (NVDA) stock is in focus after the artificial intelligence (AI) chipmaker reported better-than-expected earnings and stronger-than-anticipated Blackwell sales. New Street Research technology infrastructure analyst Antoine Chkaiban joins Morning Brief with Seana Smith and Brad Smith to discuss the results.
Chkaiban says the "key takeaway" of Nvidia's earnings report "is that Blackwell is ramping very fast," explaining that the $11 billion in sales during the fourth quarter is "well above" analyst expectations and the company's outlook. "That's what the Street likes in the print," he adds.
The stronger-than-expected Blackwell revenue "dismisses concerns of a backloaded year ... around Blackwell being slow to ramp around some challenges in ramping the rack level system." Seeing Nvidia "printing $11 billion sales of Blackwell in the quarter ... completely dismisses those concerns."
"We expect things to improve throughout the year as the product ramps," he says, adding the tech is expected to get more complex with more high-bandwidth memory and low latency, which are "going to keep driving gross margins down in our view."
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This post was written by Naomi Buchanan.