"The market is holding its collective breath ahead of Nvidia ( NASDAQ:NVDA ) earnings after the bell this afternoon. Wall Street analysts are expecting another blowout quarter , with revenue of $55 billion - marking 56% year-over-year growth - alongside adjusted earnings per share of $1.26, up 54%, all driven by insatiable demand for advanced AI chips. Yet beneath the optimism lies real anxiety: even a whisper of softening demand or margin pressure could trigger a sharp sell-off in Nvidia shares and drag the broader indexes lower."
"The emails, from Nvidia's Worldwide Field Operations team in July and August, focus on selling enterprise software suites such as Nvidia AI Enterprise (NVAIE), Run:ai (GPU orchestration), Omniverse (3D simulation), and vGPU (virtualized GPU sharing). Sales leaders described a "fundamental disconnect" between Nvidia's aggressive bundling strategy and the procurement and legal teams of large customers, especially in regulated sectors like finance and healthcare. Key revelations include disorganized internal pitch materials ("Everyone is hacking their own decks together") and prolonged negotiations over data security, indemnity clauses, and liability caps."
Markets await Nvidia earnings with analysts forecasting $55 billion in revenue (56% year-over-year) and $1.26 adjusted EPS (up 54%), driven by strong demand for advanced AI chips. Investors worry that any sign of softening demand or margin pressure could cause a rapid sell-off and pull broader indexes lower. Nvidia recently helped propel the bull market and briefly exceeded a $5 trillion valuation. Internal emails reveal challenges selling enterprise software suites—Nvidia AI Enterprise, Run:ai, Omniverse, and vGPU—highlighting a disconnect between bundling strategy and customers' procurement and legal needs, disorganized pitch materials, and extended negotiations over security and liability, increasing valuation risk for a stock trading near 26 times forward earnings.
Read at 24/7 Wall St.
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