Summary of key points:

• 2024Q2 revenue USD30B (much higher than original USD28B estimate), YoY+122%, QoQ+15%.
• Fidelity was a major beneficiary of the AI boom, with revenue from its data center business, including AI chips, growing 1541 TP3T to $26.3 billion compared to the prior period, accounting for 881 TP3T of total sales, compared to 861 TP3T in the prior quarter.
• H100 and H200 are currently in improved supply, but demand is still higher than supply.
• It expects its latest Blackwell chips to bring in billions of dollars in revenue in the fourth quarter, addressing widespread concerns that production delays were holding back growth.
• The revenue estimate for Q3 is USD32.5bn, with an upside/downside of 2% (USD31.85bn~USD33.05bn).

Operation Profile:

• Revenue in 2024Q2 was USD30bn (vs. USD28bn expected), YoY +122%, QoQ +15%. Data center revenue was USD26.2bn (vs. USD25bn expected), gaming revenue was USD2.88bn (vs. USD790m expected), and automotive-related revenue was USD345m (the only revenue that was lower than USD348m expected). Revenue related to the automotive sector was USD345 million (the only one that was lower than the forecast of USD348 million).
• 2024Q2 net profit USD16.6bn, YoY+168%, QoQ+12%.
• Earnings per share after the split was USD0.67, YoY+168%, QoQ+12%.

Company Status:

• Data center revenue reached USD26.3B, up 154% YoY, driven by strong demand for Hopper, GPU computing and networking platforms.
• Demand remains strong at Hopper, with H100 and H200 now showing improved supply, but demand is still higher than supply. The expectations for Blackwell are incredible. As data centers around the globe are going all out to modernize computing as a whole through accelerated computing and generative artificial intelligence, Phaidon achieved record revenues.
• Spectrum-X (1.6x the performance of traditional Ethernet) Ethernet for artificial intelligence and NVIDIA AI enterprise software are two new product categories that plan to roll out Spectrum-X annually and will kick off a multi-billion dollar product line within a year, achieving significant scale growth, demonstrating that Fidelity is a data center-scale platform. Throughout the ecosystem, Fidelity is helping front-end model developers to consumer web services to enterprises. Generative AI will revolutionize every industry. Spectrum-X is planned to be launched annually and will launch a multi-billion dollar product line within a year.
• AI startups consume tens of billions of dollars of cloud capacity from cloud service providers (CSPs) every year, and countries are recognizing the importance of AI and are investing in AI infrastructure.Nvidia's opportunity in this area is expanding, with an expectation of sovereign AI revenues of USD11 to USD13 billion.Nvdia AI and Nvdia Omniverse are ushering in the era of AI and Nvdia AI and Nvdia Omniverse are ushering in a new era of AI and general-purpose robotics.
• Nvdia NIM accelerates and simplifies model deployment. Companies in healthcare, energy, financial services, retail, transportation, and telecommunications are using NIM, including Aramco, Lowes, and Uber. AT&T realized 70% in cost savings and an eight-fold reduction in latency after adopting NIM for generative AI, call transcription, and classification. More than 150 partners are embedding NIM into every layer of the AI ecosystem.
• Demand from the automotive and healthcare industries continues to grow and is expected to be a multi-billion dollar business in the coming years.
• Nvidia continues to introduce new CUDA-X libraries, exploring new market opportunities and strengthening its leadership position in data science and data processing.

Future Outlook:

• Pfizer expects third quarter adjusted gross margin to be 75%, a 50 basis point upward and downward movement, and expects full year gross margin to be in the neighborhood of 70%.
• Pfizer expects GAAP and non-GAAP operating expenses to be approximately USD4.3B and USD3.0B, respectively, in the third quarter, and for the full year, operating expenses are expected to grow by 40% or more than 40%.The company expects GAAP and non-GAAP other income and expense income to be approximately USD350M, excluding gains and losses on unaffiliated investments and publicly held equity securities.The GAAP and non-GAAP tax rate is expected to be 17% up or down 1%, excluding any discrete items.The company expects to increase its operating expenses by approximately USD4.3B in the third quarter. GAAP tax rate is expected to be 17%, with an upward and downward variance of 1%, excluding any discrete items.
• In order to increase production, Blackwell GPU quality has been changed, and production is scheduled to begin increasing in Q244 and continue through 2026. 2024Q4 is expected to generate billions of dollars in Blackwell revenue. Hopper shipments are expected to increase in the second half of 2025.

Ji-Pu Viewpoint:

Fidelity Fidelity's stock price has risen as much as 1,40% so far this year, which is relatively bright among the seven major technology stocks this year, making it one of the biggest beneficiaries of the rise of artificial intelligence-related stocks. The financial report is better than expected but the market feedback is not given, the day even closed down 8%, it can be seen that the market requirements for capitalization is already a high standard of scrutiny, can not just exceed the expectations of some of the good is not enough to be better. Overall, Nvidia's financial report just proved that the inventory cycle is still in the uptrend, especially in terms of revenue and gross margins are reported success, but the market competition and supply chain challenges are still risk factors that need to be paid attention to in the future. Fidelity in the past is about 100%~200% annualized growth rate and then growth, a so large volume of the value of the stock has been to such a high intensity of market capitalization expansion to pull up the difficulty is very high, so in the long term to look at the base period is relatively high in the case of the present will encounter some bottlenecks, as for the fast-changing market, how to take advantage of Nvidia's technological strengths to promote the growth and stability of the market, that is what we need to continue to pay attention to. As for how Nvidia will utilize its technological advantages to drive growth and stabilize the market in a fast-changing market, this is what we need to keep focusing on.