The Long Term Investor

HERE is from Investor Relations:

"We specialize in markets where our computing platforms can provide tremendous acceleration for
applications. These platforms incorporate processors, interconnects, software, algorithms, systems,
and services to deliver unique value.

Following the rapid evolution in our businesses, we are transitioning to a new reporting framework
that better reflects our current and future growth drivers.

We will have two market platforms – Data Center and Edge Computing.

Within Data Center, we will report two sub-markets, Hyperscale and ACIE which incorporates AI
Clouds, Industrial, and Enterprise. Hyperscale will include revenue from the public clouds and the
world’s largest consumer internet companies, while ACIE addresses our growth opportunity in diverse
AI purpose-built data centers and AI factories across industries and countries.

Edge Computing highlights devices for agentic and physical AI including PCs, game consoles,
workstations, AI-RAN base stations, robotics and automotive.

Revenue

Revenue for the first quarter was a record $81.6 billion, up 85% from a year ago and up 20%
sequentially.

Data Center revenue for the first quarter was a record $75.2 billion, up 92% from a year ago and up
21% sequentially, driven by the ramp of our Blackwell 300 products and demand for our InfiniBand,
Spectrum-X™ Ethernet, and NVLink™ solutions. Hyperscale revenue increased sequentially and
remained at approximately 50% of Data Center revenue, while the remaining 50% came from a
continued diversification of customers, including AI Clouds, industrial, enterprise, and sovereign
customers. No shipments of Data Center Hopper products to China occurred during the quarter,
compared with $4.6 billion in the first quarter of fiscal year 2026.

Under the previous sub-markets, Data Center compute revenue was a record $60.4 billion, up 77%
from a year ago and up 18% sequentially. Data Center networking revenue was a record $14.8 billion,
up 199% from a year ago and up 35% sequentially.

Edge Computing revenue for the first quarter was $6.4 billion, up 29% from a year ago and up 10%
sequentially. The increases were driven by robust Blackwell workstation demand, partially offset by
slower consumer PC demand that was tempered by elevated memory and systems prices.

Gross Margin

GAAP and non-GAAP gross margins for the first quarter increased from a year ago on lower inventory
provisions, primarily due to the prior year’s $4.5 billion charge associated with H20 excess inventory
and purchase obligations. GAAP and non-GAAP gross margins were approximately flat sequentially as
our Blackwell architecture remains the majority of our revenue.

Expenses

GAAP operating expenses for the first quarter were up 52% from a year ago and up 12% sequentially,
and non-GAAP operating expenses were up 49% from a year ago and up 12% sequentially. These
increases were driven by higher compensation and benefits expense due to employee growth and
compensation increases, compute and infrastructure costs, and engineering development materials
for new product developments.

Other Income & Expense and Income Tax

GAAP other income and expense (OI&E) includes interest income, interest expense, and equity
securities gains or losses. Non-GAAP OI&E excludes equity securities gains or losses.
Interest income for the first quarter was $540 million, up slightly from a year ago and down slightly
sequentially. Net gains from equity securities for the first quarter was $15.9 billion, driven by
unrealized gains in publicly-held and non-marketable equity securities.

GAAP effective tax rate for the first quarter was 16.6%, an increase from a year ago, primarily due to
a lower impact from stock-based compensation tax benefits. Non-GAAP effective tax rate for the
first quarter was 16.0%.

Balance Sheet and Cash Flow

Cash, cash equivalents, and marketable debt securities were $50.3 billion, down from $52.4 billion a
year ago and up from $49.7 billion a quarter ago. These changes primarily reflect higher revenue,
offset by outlays for stock repurchases and strategic investments.

Accounts receivable was $40.7 billion with 45 days sales outstanding (DSO), down from 51 days
sequentially, driven by timing of cash collections and customer payments received prior to next
quarter’s invoice due dates. We expect our DSO to return to more normal levels next quarter.
Inventory was $25.8 billion, up from $21.4 billion sequentially, and total supply-related commitments
were $119.0 billion. We have strategically secured inventory and capacity to meet demand beyond
the next several quarters.

Multi-year cloud service commitments were $30.0 billion, up from $27.0 billion sequentially, to
support the growing needs of our research and development efforts.

Cash flow from operating activities was $50.3 billion, up from $27.4 billion a year ago and up from
$36.2 billion a quarter ago. The year-on-year increase reflects growth in revenue, while the sequential
increase was driven by higher revenue and lower cash taxes. We expect a substantial increase in cash
taxes in the second quarter related to estimated federal and state cash tax payments.

We returned a record level of approximately $20.0 billion to shareholders in the first quarter through
share repurchases and cash dividends.

On May 18, 2026, our Board of Directors approved an increase to our quarterly dividend from $0.01
per share to $0.25 per share and an additional $80.0 billion to our share repurchase authorization,
without expiration.

Outlook

Outlook for the second quarter of fiscal 2027 is as follows:

• Revenue is expected to be $91.0 billion, plus or minus 2%. We are not assuming any Data
Center compute revenue from China in our outlook.

• GAAP and non-GAAP gross margins are expected to be 74.9% and 75.0%, respectively, plus or
minus 50 basis points.

• GAAP and non-GAAP operating expenses are expected to be approximately $8.5 billion and
$8.3 billion, respectively.

For the full year fiscal 2027, we expect GAAP and non-GAAP tax rates to be between 16.0% and
18.0%, excluding any discrete items and material changes to our tax environment."

 

AND.

Nvidia tops Q1 estimates, offers upbeat outlook on strong chip sales

https://finance.yahoo.com/markets/s...t-outlook-on-strong-chip-sales-191200548.html

 

NOW WE WAIT.....for MR A-HOLE and all the rest of the short traders, speculators, market manipulators, the media, and the AI TRADING PLATFORMS.....to tell us how weak future the stock has....in spite of yet ANOTHER great earnings report.

 

The big drop in futures usually comes after the oral presentation....the conference call which will happen at 5:00 Eastern time.

 

One of the articles I posted recently was BITCHING about a lack of stock buy-backs and low dividend. SO......now....STFU.

"Nvidia is returning more money to shareholders
Nvidia will return more of its cash to shareholders. The chipmaker’s board has authorized $80 billion for share repurchases. The company is also bumping up its quarterly cash dividend to 25 cents per share from 1 cent previously.

Nvidia generated $48.6 billion in free cash flow in the period, up from $34.9 billion in the prior quarter and $26.1 billion a year ago."

https://www.cnbc.com/2026/05/20/nvidia-nvda-earnings-report-q1-2027.html

Find something else to BITCH about and fear-monger.

 

AND....of course the stock is now RED after hours. We will find out the REAL story tomorrow at the open and into the morning.

BUT there is hope till the open tomorrow..... since the "after-hours trading" is driven by short term speculators and.....NOT....the guts of the long term markets.....the RETAIL INVESTORS.

Unfortunately.......we often have little ability to stop the speculative NEGATIVE WAVE that always hits the day or two after earnings

 

As i often say.....the markets are NOW disconnected from reality. REALITY being earnings and actual business fundamentals.

The NEW primary DRIVER of stocks and the markets is now.......THE MEDIA.

What a shame and what a disaster going forward. I will not repeat my usual RANT on this topic.

At least this long term trend and creeping disaster will happen slowly enough that I am safe .... due to my SENIOR life expectancy.

 

WELL.....good old NVDA. Another AMAZING earnings BEAT. A HUGE stock buy-back number. A MASSIVE increase in the dividend. GLOWING guidance. AND....the largest most DOMINANT company in the WORLD.

AND....where are we today......DOWN by $1.41. If ANY other company stock priced like NVDA put up the above it would be up by 20% to 40% in a single day.

For this company the market is.....WHATEVER......FU. So I say to the markets.....WHATEVER......FU.

I am not going to waste my brain, or my vocal chords, or my typing fingers, on NVDA anymore today. It is just TOO STUPID to even discuss. AND....it has ALL been said many times after the same reaction to the last 10-12 quarters of earnings.

 

A good topic in this article. My view of the question in the title.....ZERO. I care less than NOTHING....about consumer or any other sort of sentiment poll.

The Investment Implications of Record-Low Consumer Sentiment
Consumers are feeling extremely down—what, if anything, does that mean for markets?

https://www.fisherinvestments.com/e...implications-of-record-low-consumer-sentiment

....."Many may not appreciate just how resilient business activity is proving, but stocks do. Far from ignoring risks as many headlines claim, markets have more clarity on matters than the press thinks. As the ultimate leading indicator, stocks see a brighter future ahead. While the prevailing fear today is that markets are over their skis, the truth is far simpler: Reality just exceeds sentiment."

 

Just part of the NORMAL business environment.....unfortunately. YES.....the charismatic....EGOMANIACS....that we elect to govern us......are usually MORONS. BUT.....somehow we survive.

The Superpower of Coping with Government Stupidity

https://www.betonit.ai/p/the-superpower-of-coping-with-government

......."Businesses have an unsung superpower. They aren’t just awesome at producing and marketing goods and services. They are also awesome at coping with government stupidity"......

 

UNFORTUNATELY....this is the markets today. TOTALLY PREDICTABLE.

S&P 500 falls as oil pops, Nvidia declines after earnings

https://www.cnbc.com/2026/05/20/stock-market-today-live-updates.html

 

YEAH....it might. BUT not today or tomorrow.

Nvidia's $80 billion stock buyback and bigger dividend may unleash an Apple-like stock move

https://finance.yahoo.com/markets/s...leash-an-apple-like-stock-move-122248827.html

The greatest problem with NVDA stock is that EVERYONE in the world already owns it. There are few buyers left to pile in. SO....a buy-back in this case may be a good use of company money. May as well buy back the stock if no one else is going to.

 

What a DULL and BORING market today. NOTHING is going on and there is ZERO news in the financial world that has any meaning. SO....the direction is simply....DOWN....for the SP500 and the NASDAQ.

NO COMMENT......but.....NVDA is now down by $5.36....or.....2.40%.

Over five days....down by 5%. WHATEVER.

No reason to waste more time here posting.... at the moment.

I will just lay on my board and do a little sun bathing....as I wait for a wave to ride.

 

I LIED.....I'MMMMMM BACK. I had to pop back to post one article. this is one of the best I have seen about NVDA today.

To Nvidia and Beyond: Sometimes Being Great Isn't Enough

https://finance.yahoo.com/markets/stocks/articles/nvidia-beyond-sometimes-being-great-135300488.html

....."Has investing in Nvidia become like living in Hogwarts School of Witchcraft and Wizardry? Are the artificial intelligence (AI) bellwether's perpetual feats of bar-raising magic so commonplace that they no longer titillate or stand out? There is still plenty to like amid the chorus of yawning. Let's dig into the joys of market apathy."......