Episode summary
Nvidia Earnings Lead to Share Slump; SpaceX IPO Details | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 16 min
Summary
Nvidia reported another blowout quarter, with sales up 85% to $81.6 billion and guidance for about $91 billion next quarter, but investors still responded coolly. The host and a market strategist said the stock’s reaction reflected a market that has already priced in huge AI growth, even though Nvidia boosted its dividend and authorized an $80 billion buyback. Jensen Wong said demand has “gone parabolic” and argued that agentic AI, robotics, and broader enterprise and government adoption will widen Nvidia’s customer base beyond giant data center operators.
The other major market story was SpaceX’s filing for an initial public offering. Bloomberg’s John Tucker said the filing shows billions in losses and a super-voting structure that would keep Elon Musk in control, while also tying his possible share awards to ambitious milestones, including a human settlement on Mars and data centers in space. The guest said the filing underscores how much cash SpaceX is burning as it tries to fund a very large growth trajectory.
The program also touched on OpenAI’s expected IPO move, Anthropic’s growing revenue, and geopolitical tensions involving Iran, Trump, and the Strait of Hormuz, plus domestic stories ranging from Greenland to New York politics and the LaGuardia runway shutdown.
Key takeaways
- Nvidia’s 85% sales growth and $91 billion outlook were strong, but the host said the market reaction was muted because the guidance stayed within estimates.
- A guest from Freedom Capital Markets said Nvidia’s numbers were “fine” and likely to improve later, despite the premarket slump.
- Jensen Wong said Nvidia wants to rely less on giant data center operators and expand revenue from businesses and governments.
- SpaceX’s IPO filing revealed billions in losses and a share structure designed to let Elon Musk keep control.
- The guest said SpaceX’s Mars and space-data-center goals show how extraordinary the company’s growth plans are, even as cash burn remains heavy.
Notable quotes
“Demand has gone parabolic. The reason is simple. Agentic AI has arrived. AI can now do productive and valuable work”
“this guidance is not disappointing. I think it's fine because you know what? It'll be $91 billion and then they're going to upsight it like they always do”
“SpaceX filed publicly for what stands to be the largest ever initial public offering”
“These goals include a human settlement on Mars with at least 1 million inhabitants. And oh yeah, SpaceX would first have to build data centers in space”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. — Good morning. I'm Nathan Hager. — And I'm Karen Moscow. Here are the stories we're following today. — Well Karen, we begin with the lukewarm market reaction we're seeing to another blowout from Nvidia. Sales at the world's most valuable company gained 85% to 81.6 6 billion in the latest quarter and Nvidia forecast sales in the coming quarter of about 91 billion. It also boosted its quarterly dividend and announced an $80 billion stock buyback. Nvidia CEO Jensen Wong says he expects demand to come from ordinary businesses outside the tech sector.
This was an extraordinary quarter. Demand has gone parabolic. The reason is simple.
Agentic AI has arrived. AI can now do productive and valuable work. Tokens are now profitable, so model makers are in a race to produce more.
In the AI era, compute capacity is revenue and profits. NVIDIA is the platform of this era. NVIDIA CEO Jensen Wong says he aims to rely less on giant data center operators and predicts other businesses and governments will become a bigger source of revenue for the company's chips and computing products.
Paul Meeks covers Nvidia for Freedom Capital Markets. He says he's not concerned with the numbers. I'm not necessarily worried about what they printed or even this guidance, but this guidance is not disappointing.
I think it's fine because you know what? It'll be $91 billion and then they're going to upsight it like they always do. So, this will be much better at the end of the day than the whisper.
Paul Meeks at Freedom Capital Markets. Right now, Nvidia's trading down about 210 of 1% premarket. — Well, Nathan, there's also a couple of high-profile IPOs on the way for investors and Bloomberg's John Tucker joins us with the very latest.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- nvidia earnings
- ai chip competition
- spacex ipo
- space-based data centers
- iran us peace talks
Companies and tickers mentioned
- NVDA
- Nvidia
- SpaceX
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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