Nvidia’s Blowout Quarter Isn’t ‘Impressive Enough’ Because It’s Sold Out, Analyst Says
TREE NEWS reports: Nvidia reported another record-breaking quarter, with revenue and earnings soaring past expectations. Yet the stock barely moved, and one analyst says the reason is simple: Nvidia can’t sell what it doesn’t have. Seaport analyst Jay Goldberg argues that the company’s supply is completely sold out, making even stellar results ‘not impressive enough’ to drive further upside in the near term.
News Summary
In its latest earnings report, Nvidia posted revenue of $30.0 billion for the fiscal second quarter, up 122% year-over-year, and data center revenue of $26.3 billion, up 154%. Earnings per share came in at $0.68, beating estimates by $0.04. Despite the beat, shares slipped in after-hours trading. Goldberg noted that Nvidia’s guidance for the next quarter was strong but not a surprise, as the company’s entire production capacity for advanced AI chips like the H100 and upcoming Blackwell series is already allocated to hyperscalers and AI startups.
Industry Analysis
Goldberg’s point highlights a fundamental shift in how the market values Nvidia. The company is no longer judged on raw performance but on its ability to exceed already-lofty expectations. With supply constrained by manufacturing capacity at TSMC and advanced packaging bottlenecks, Nvidia cannot accelerate revenue growth even if demand surges. This creates a ‘sell-the-news’ dynamic where even a perfect quarter fails to move the needle.
For the broader tech and crypto sectors, Nvidia’s supply shortage has ripple effects. AI-focused crypto projects that rely on GPU compute—such as decentralized AI networks (e.g., Render, Akash) and zero-knowledge proof miners—face higher costs and longer lead times for hardware. Conversely, Nvidia’s pricing power and backlog indicate sustained demand for AI infrastructure, which could bolster narratives around decentralized compute marketplaces as alternatives to centralized cloud providers.
Forward-Looking Perspective
Looking ahead, Nvidia’s challenge is not demand but supply. The company is working to secure additional capacity from TSMC and is investing in its own packaging facilities, but these efforts will take quarters to materialize. Investors should watch for signs of supply normalization in 2025, which could unlock another leg of growth. For crypto markets, the GPU crunch may accelerate innovation in tokenized compute and distributed training, as startups seek cheaper, more accessible alternatives to Nvidia’s flagship chips.
In the meantime, Nvidia’s stock may remain range-bound, but its dominance in AI hardware is unquestioned. The real question is whether the market’s patience will run out before supply catches up.
