Nvidia ‘s financials released after Wednesday’s close weren’t quite the $4 billion “Triple Lindy” of upside many investors were hoping for. But they were darn close, which avoided a feared massive sell-off in one of the three U.S. companies in the $3 trillion market cap club. Revenue for at the AI semiconductor powerhouse’s fiscal 2025 second quarter jumped 122% year-over-year to $30.04 billion, well ahead of analysts’ forecasts of $28.7 billion, according to data provider LSEG. While that was about a $1.3 billion beat, it was short of the $2 billion beat that Wall Street talked itself into. Adjusted earnings-per-share increased 152% to 68 cents, exceeding the LSEG-compiled consensus estimate of 64 cents. Revenue guidance for the current quarter was for a nearly $2.5 billion sequential increase. Together with the fiscal Q2 beat, we got about $2 billion out of the $4 billion. On top of the strong results, we did get the bullish long-term commentary called for in the “Triple Lindy,” with CEO Jensen Huang saying that “Hopper demand remains strong, and the anticipation for Blackwell is incredible.” Throw in the $50 billion buyback authorization and maybe we can call it “Two and a half Lindy.” NVDA YTD mountain Nvidia YTD Continuing its rough patch since its record closing high above $135 on June 18, Nvidia stock dropped more than 7 percent in after-hours trading. That, however, was not surprising to us because Jim Cramer said during Wednesday’s Morning Meeting that there was a lot of “hot money” in the Club name waiting to get washed out. We’re talking about investors who bought the stock but don’t have much conviction or care for the long-term and would sell on anything short of blowout numbers. Jim doesn’t see a need to step in first thing Thursday morning and buy the dip. Let the sellers finish unloading. But, for those interested in the long-term, we think Nvidia’s future is as bright as ever. We are, therefore, reiterating our buy-equivalent 1 rating and $ 150-per-share price target. Bottom line In another example of just how important it is to factor in buy-side expectations when thinking about how to position into an earnings release, Nvidia’s strong results and solid outlook were not able to keep the sellers away. Shares were down because expectations got out of control plain and simple. The results, the guide and everything we heard on the call served only to increase our conviction that Nvidia really is the greatest semiconductor company in the world at the heart or the accelerated computing megatrend. With the yearly gains in central processing unit (CPU) compute power far more incremental these days than back when Moore’s Law was in full effect, graphics processing unit (GPU) accelerated computing, which is Nvidia’s specialty, is the key to everything from autonomous driving to robotics, generative AI, digital twins, computer-aided drug discovery and so much more. In addition to an overall stronger fiscal Q3 quarter guide, CFO Colette…
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