Now, I do want to start off with the
China numbers here. I guess it's not a
total surprise that we didn't see any
sales there, but does this give you
concern longer term about what their
ability to uh uh to have access to the
Chinese market will be?
No, I I mean, I don't think so, Roman.
They they they weren't allowed to ship
to China last quarter, so and they they
told us they weren't going to have any
revenue to China. I I think it really
depends more on what they talk about uh
for an outlook and and actually the the
lower the expected China number is in
fiscal Q3 the the better off you are in
the sense that uh the less contribution
they're expecting from that geography so
that the better their organic growth
looks if you if you will
I think more broadly talk to us on a
quarter byquarter basis and a
year-by-year basis look m the market had
basically frontr run this in many ways
Last week you had nine analysts
upgrading their expectations. This week
alone on Monday you had two extra
increase their price targets. People
were anticipating good numbers. Was this
beat not enough more broadly? They're
coming in line for their fiscal second
quarter and basically in line for the
forecast as well.
I I mean the the market's telling you
that that that expectations had lifted a
bit more. I I was one of those analysts
who who who upgraded my price target
last week. Um, but something to think
about here is Nvidia almost always
leaves or over the last few years
they've left something on the table and
that that something has consistently
been, you know, 23 billion. So when the
guy to 54 billion, what it seems like
they've been telling the street is more
like they can do 56 57 billion, I don't
think anyone's going to be disappointed
if at the end of Q3 they're coming in at
those type of numbers. Uh when we talk
about uh the idea that this is still a
company obviously generating a lot of
revenue, a lot of cash flow and
incredibly healthy margins, particularly
for a company its size, Matt, where is
the growth story for this company longer
term given uh just how outsiz that
growth had been over the last three
years and what is sort of a growth rate
that you're comfortable with?
Yeah, so it's I I think the growth story
is pretty clear. It's right now uh we
are testing these really large models uh
and that's where a lot of NVIDIA's
revenue is coming from. Um but going
back to that that MIT MIT report only 5%
of companies are realizing value I I
think the growth comes from both
businesses and consumers
bringing inference into their workloads.
Um, right. So, getting real applications
out of out of uh generative AI, that's
what that's what drives revenue.
What's interesting is when you go into
the statement and they talk about all
the wins they've had in the previous
quarter revealing model builders across
Europe and the Middle East, they're
talking about sovereign AI. They're
talking about adoption in European
nations, France, Germany, Italy, Spain,
the UK. Matt, how much do we need to
hear Jensen Hang really articulate
sovereign AI versus this dependency of
about 40% of their revenues on those few
hyperscalers?
Um, I I think I think sovereign AI is
really important. I think it's really
important in 2026, right? Roma was
asking me how how they get to growth
numbers. Um, you know, I I think they
can do well over 30% growth next year
and I think Sovereign's really an
important part of that. Um I I think
Jensen talking to that is important but
I also think that people have made those
commitments that that part of the reason
that that Nvidia
you know is kind of a safe investment
here is there will be more model
building next year. There will be more
data center spend next year. The real
question is by the time you get to the
end of 2026 do we begin to see those
inference applications show up to drive
more data center investment as well as
more consumer investment. Um, and I
think that's where 2027, 2028, those
legs of growth come