"Recent high-profile sales of Nvidia stock by Peter Thiel's hedge fund and by Softbank raised concern among investors about the GPU maker and the health of the AI boom. The company reported revenue of $57 billion, an increase of 22 percent from the previous quarter and an astonishing 62 percent from the year-ago quarter. It maintained this growth with a GAAP gross margin of 73.4 percent."
"One of the concerns related to Nvidia has more to do with its customers than the company itself. Noted investor Michael Burry has argued that companies like Oracle and Meta are understating the depreciation of their Nvidia GPUs, an accounting practice that distorts the market value of these firms. Treating Nvidia GPUs as if they will remain commercially useful for more than two or three years reduces annual costs, pushes paper profits higher, and generally makes financial statements look better."
Nvidia reported $57 billion revenue, up 22 percent sequentially and 62 percent year-over-year, with a GAAP gross margin of 73.4 percent. Blackwell sales and cloud GPUs are sold out, driving outsized demand for its latest AI accelerators. Large recent stock sales by notable investors raised concern about an AI bubble, but the financial results indicate continued strong momentum. Concerns remain about customer accounting: extended depreciation schedules at firms using Nvidia GPUs can inflate reported profits while masking rapid hardware obsolescence as product cycles accelerate from two years to one year.
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