Episode summary
Nvidia's Blowout Quarter; Investors Gauge Jackson Hole | Bloomberg Daybreak: US Edition
Bloomberg Daybreak: US Edition
· · 15 min
Summary
Nvidia’s latest earnings report set the tone for the morning, as the company projected about 70% revenue growth in fiscal 2028 and reassured investors that AI demand remains extremely strong. The host and a Bloomberg tech reporter said the guidance was well above Wall Street expectations and reflected supply constraints rather than a lack of customers, with memory, packaging, power and data-center capacity still limiting how much Nvidia can ship. The company also signaled that margins could narrow in the near term as memory costs rise, though it expects gross margin to settle back into the 72% to 73% range in fiscal 2028 as it raises prices.
The conversation then shifted to Jackson Hole, where central bankers are expected to focus on a global rethink of inflation as wars, AI investment and extreme weather keep price pressures elevated. The host said investors want to hear how the Fed chair will frame those risks, while a Bloomberg correspondent suggested the speech may be cautious and data-dependent rather than a major policy signal.
The show also covered other policy and geopolitical tensions: Lisa Cook denied mortgage-fraud allegations through her lawyer, Iran and Oman discussed the Strait of Hormuz, Russia may intensify attacks on Ukraine, and US-Canada trade frictions persisted. The program also noted Meta’s $18 billion settlement over teen safety claims and a judge’s dismissal of X’s challenge to New York’s hate-speech disclosure law.
Key takeaways
- The host said Nvidia’s fiscal 2028 revenue guidance of about 70% growth shocked Wall Street because it was far above the roughly 45% consensus estimate.
- A Bloomberg tech reporter argued Nvidia’s outlook is a supply story, with demand still exceeding what the company can ship because of memory and other bottlenecks.
- The analyst said Nvidia’s pricing power should limit gross-margin damage even if memory costs rise, and noted reports of a roughly 15% system price increase next year.
- The host said Jackson Hole will test how central bankers respond to inflation risks linked to war, AI spending and extreme weather.
- The show said Lisa Cook denied the mortgage-fraud accusations as “unfounded and untrue,” while Meta’s $18 billion settlement became another major legal headline.
Notable quotes
“We expect to grow revenue by approximately 70% in fiscal 2028”
“The reason they're guiding growth of 70% is that's what they can supply”
“It will be a very safe speech as he awaits data coming up to get to the next Fed meeting”
“This is a significant victory for families across the country, for parents, for children”
“So I don't think there'll be a lot to worry about from any margin compression given the power of the ecosystem that Nvidia faces today”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. — Good morning. I'm Nathan Hager. — And I'm John Tucker. Here are the stories we're following today. — John, we begin this morning with earnings from Nvidia. The chipmaker at the heart of the artificial intelligence boom gave a bullish sales outlook into fiscal 2028. And that's easing concerns that AI spending is poised to lose momentum. We get more from Bloomberg tech host Ed Ledllo.
Nvidia never does this. They do not give full fiscal year outlooks. And so saying growth will be 70% for revenue in fiscal 28 was not just astonishing to take that step, but when you compare it to Wall Street estimates going into this earnings print, the street was seeing 45% growth in fiscal 28.
Add to that the commentary from Jensen Wong and Klet Crest who I spoke to on the phone, the CFO, that basically demand is running at 100% or there are lots of parts of Nvidia's business where demand is doubling right now. The reason they're guiding growth of 70% is that's what they can supply. The main constraint is still memory and so what they can get their hands on that results in 70% topline growth.
This is Ed Ledllo for Bloomberg News in San Francisco.
All right, Ed, thank you. And shares of Nvidia in the pre-market are jumping. They're up more than 7 and a half%. — Yeah, and Nathan, Nvidia is not the only tech stock on the move. Shares of Salesforce. They are up almost 11% in early trading. The software company delivering an outlook for strong revenue expansion. It's also deepening its partnership with Anthropic and that is reassuring investors it can compete successfully in the era of AI. John, shares of Crowd Strike are soaring pre-market as well, up 8 and 2/3%.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- nvidia earnings
- ai investment boom
- jackson hole inflation outlook
- fed rates and borrowing costs
- mortgage fraud allegations
Companies and tickers mentioned
- NVDA
- Nvidia
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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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