Nvidia analyst says record results are not “impressive enough” as chips sell out

Nvidia's second-quarter revenue beat Wall Street estimates by about $4 billion. Revenue nearly doubled from a year earlier. Nvidia guided for $108 billion in current-quarter revenue. Analysts had expected $103.9 billion. Jay Goldberg of Seaport Research Partners said the results were not impressive enough to move Nvidia's stock. Goldberg is the only Wall Street analyst with a sell rating on Nvidia. Goldberg said Nvidia's chip allocations are locked in for the year. He said the limited supply leaves little room for an upside surprise this year. Goldberg said Nvidia's dependence on Taiwan Semiconductor Manufacturing Company is another constraint. He said that constraint will not ease soon. Goldberg said Groq, which he called an Nvidia acquisition, could add volume next year outside that supply limit. He said software and neocloud revenue could provide additional growth. Goldberg flagged competition from AMD's Instinct chips. He also flagged Google's TPU. He further flagged in-house chip efforts at OpenAI and Anthropic. Goldberg still expects Nvidia to retain the largest market share. Goldberg said CEO Jensen Huang's tone on the earnings call could move the stock. Goldberg described Huang as a persuasive speaker. He said Huang's recent track record in that area has been mixed. UBS analyst Tim Arcuri said the results should increase confidence in Nvidia's earnings path through 2027 and 2028. Nvidia shares briefly erased an early after-hours decline. The same pattern has occurred during Nvidia's longest losing streak since 2022 before earnings.