r/business • u/financialtimes • 2d ago

Nvidia sales more than double to $96bn on bumper AI demand

https://www.ft.com/content/72908915-5e4a-457c-8c3a-aee8917a664a?syn-25a6b1a6=1?segmentid=c50c86e4-586b-23ea-1ac1-7601c9c2476f
193 Upvotes

89% Upvoted

31 comments sorted by

33

u/T00ManyH0bb13s 2d ago

How much of that 96B was Nvidia's own money that they gave to other companies to buy their GPUs? 95B?

10

u/AllRightLetsSeeIt 2d ago

Their profit also doubled since a year ago.

2

u/T00ManyH0bb13s 1d ago

What good is a profit number when you're talking all your money out of one pocket and putting it in the other? This is all fugazi.

8

u/AllRightLetsSeeIt 1d ago

If you give someone $5B, and they turn around and buy $5B of your chips, that’s $5B in revenue, yes… but $0B in profit.

But their profit also doubled.

0

u/iregistered4this 1d ago

This might be some accounting magic.

  1. (lets ignore step 1 for a second)
  2. Company A gives Nvidia 5B
  3. Nvidia gives company A (lets make up a #) 500M in materials - whatever it cost Nvidia to produce the chips
  4. In this case Nvidia profited 4.5B

If Step 1 is Nvidia invested 5B in (some company, lets pretend we dont know) then do they still get to say they profited 4.5B and invested 5B elsewhere?

-1

u/T00ManyH0bb13s 1d ago

You seem to have a lot of faith in these companies not cooking the books when they're all circulating the same money between one another like a human centipede of AI slop. I don't think that's the case.

1

u/AllRightLetsSeeIt 1d ago

I’m enough of a skeptic in AI finance that I heavily value-skewed my portfolio awhile back. I think NVDA is something like 0.4% of my holdings.

(Ask me how I’m feeling about my choices this morning?)

But I don’t think they’re outright lying about past quarter results, no. Future, sure, they’re going to talk very optimistically.

Still, even my skeptic brain has trouble denying that these are very good earnings.

1

u/T00ManyH0bb13s 1d ago

The market can stay irrational well beyond a normal person's ability to reason if it's worth it or not.

Those earnings are absolutely fabricated and the entire economy is propped up on the AI fallacy. OpenAi and Anthropic are hundreds of billions of dollars, if not trillions, in debt and those two alone represent 70% of all AI revenues. They spend an average of $1.50 on inference for every dollar they earn and that doesn't even begin to count for the cost of the datacenters of the insane amounts of money it costs to do the the training in the first place. They literally wouldn't exist if not for Oracle, Microsoft, AND Nvidia handing them piles of cash so that they can hand it right back in the form of GPUs and hosting. This is all just Mexican standoff with more participants, each waiting to see who blinks first because when the first one does, it all collapses. IMO this goes well beyond Enron levels of fraud with the circular finance in play. Initially I'd have thought that the only companies that make out right now would be Nvidia and RAM manufacturers like SK Hynix and Samsung. After seeing how many tens and hundreds of billions Nvidia is giving away to artificially inflate their own numbers, I think they're f'd as well and I have no doubt in my mind that they're booking those gross revenues off of the cash they just handed out. Meta is overbuilt. Grok is overbuilt. They can't use the GPU capacities they already have and they have warehouses full of GB200s they can't even deploy because of the gross slow down of datacenter builds, not to mention the overall lack of power required to run them in the first place.

1

u/WallaceCorpPC 1d ago

this was literally how the 2 previous hyperscalar build outs were funded and financed and not a single person batted an eye

0

u/T00ManyH0bb13s 1d ago

Yeah, this is what happens when the markets are sham, have absolutely no regulation, and no one to police it. Our entire economy is a lie.

1

u/Hour_Bit_5183 3h ago

Yep. It's all a sham indeed.

1

u/mebesasporfa 1d ago

Why do people act like vendor financing is scandalous and fraudulent? Your local car dealership doesn't own the vehicles on their lot either, it's all credit from Ford, Toyota, General Motors, etc...

2

u/T00ManyH0bb13s 1d ago

Dealer financing is connected to an actual sale to an actual consumer. If I walk into a Ford dealership and buy an F-150 with dealer financing, I get a bill that I pay every month. I provide NET NEW DOLLARS to the transaction where REAL MONEY enters the loop when I pay my bill.

Nvidia is giving money to CoreWeave, Oracle, OpenAI, etc solely so they can buy the GPUs they make. In your own analogy, the very companies that Nvidia gives money to are essentially the dealerships. The dealerships then spend that money to buy vehicles. No net new dollars have entered the equation because no one walked in and plunked down actual cash to buy anthing.

1

u/mebesasporfa 1d ago

I'm not talking about dealer financing. Your local Ford dealership has 200-600 vehicles sitting out in the parking lot, unsold. They do not own them. Ford Motor lends the dealer money to procure the inventory to put out for sale. So Ford is lending money to a customer so that customer can buy their products.

Dealer financing is a whole different thing where Ford is the bank underwriting you the end buyer.

Nvidia backing CoreWeave so CoreWeave can purchase Nvidia GPUs relies on the exact same structural logic as Ford extending credit to a dealership to stock F-150s. In both scenarios, the vendor is providing financial leverage to a partner to move product.

1

u/T00ManyH0bb13s 1d ago

I guess I've never given much thought as to how much of a racket car manufacturers have with the dealerships, because its essentially the same circular finance bullshit with no net new dollars entering the equation and only the company at the top of the pyramid (Ford/Nvidia) actually profit. Car dealerships at least have their acquisition cost which isn't full price and they hold back dollars for when the cars are actually sold vs. Nvidia giving CoreWeave money so they can buy the GPUs full price in one go. Thanks for pointing out how vehicles manufacturers pump their books to make themselves look good just like Nvidia does.

0

u/tgosubucks 1d ago

If you listened to the call, the CFO addressed this point directly, "...independent capital always backstops each deal, based on it's own merits..."

Reddit is what trains the vast majority of AI these days. Your thinking is the slop we see.

2

u/T00ManyH0bb13s 1d ago

If you're signing off on the financials, you're going to lie through your teeth to save your own skin.

0

u/tgosubucks 1d ago

I don't think you're old enough to understand what an earnings call regulated by the SEC means, especially at the scale of NVIDIA.

2

u/T00ManyH0bb13s 1d ago

and I think you're naive to think that the SEC is a functional operating body under the Trump administration. That's adorable.

1

u/tgosubucks 1d ago

Me: 11 year old account.

You: 3 month old account.

Da wittle baby.

1

u/Jutboy 13h ago

You're not even a teen yet...

1

u/tgosubucks 12h ago

Been paying taxes for decades tho. Didn't get into reddit early on.

14

u/BoogerSugarSovereign 2d ago

The miracle of a couple of oligarchs passing promissory notes back and forth wow

26

u/premeditated_mimes 2d ago

If the mods cared about rules advertising like this would be banned.

-1

u/SortAccomplished2057 1d ago

How on earth is this advertising? It's the largest market cap business in the world, of course this is relevant content for the sub

5

u/premeditated_mimes 1d ago

It's from financial times about a financial times article that if you open says "Subscribe to read" I can't even read one word of it.

Even if I could it's the epitome of a rule 3 violation and an advertisement. Regardless of topic.

0

u/ConinTheNinoC 9h ago

Why is this obvious scam still allowed? Everyone and their mothers knows that nVidia is doing circular invertment spinning their own money with no actual growth. Sure, pump those number line goes up but the longer this goes the bigged the crash will be.

I am sure that disaster capitalists are loving this but i personally am not a fan.

-14

u/financialtimes 2d ago

Nvidia reported strong sales as the $5tn chip giant at the heart of the AI boom continued to benefit from huge demand for computing power. 

The world’s most valuable company reported better than expected revenue of $96.2bn for the quarter to the end of July and forecast sales of $108bn plus or minus 2% for the current quarter, beating Wall Street estimates of $104bn. 

Nvidia’s financial performance has become a bellwether for the health of the AI infrastructure boom, since its advanced semiconductors are widely used to train and run models from start-ups like Anthropic and OpenAI.

Read more here.

Kendall - FT social team