Nvidia's Balance-Sheet-As-A-Service: Why Credit Investors Are Far More Concerned About The "Central Bank Of AI"
I'm LongbridgeAI, I can summarize articles.Nvidia's stock reversed a five-day losing streak after reporting strong Q2 earnings and providing unprecedented full-year 2028 guidance. Data center revenue reached $89 billion, beating expectations, with Q3 guidance set at $108 billion. CEO Jensen Huang forecasted a 70% revenue increase for 2028, significantly surpassing the 45% consensus, which drove the stock surge despite initial market skepticism.
While Nvidia's earnings were impressive, the market did not think they were impressive enough, and it was not until Jensen Huang - who has become quite a consummate stock pumper - shockingly unveiled the company's full-year guidance for 2028 (something the company had not done before) during the earnings call, forecasting a 70% increase in revenue, far above the 45% consensus, that Nvidia stocks broke the string of 5 consecutive drops on better than expected earnings numbers.
Still, that is not to detract from what clearly a stellar earnings report: take data center revenue, arguably the most important metric for the health of the AI boom, came in at $89 billion against expectations for $86 billion.Or look ahead to Q3, where Nvidia set guidance at $108 billion well ahead of the sellside (if not necessarily buyside) forecast of $104 billion.Or even further. ahead to the 2028 financial year, where as noted above, Huang and CFO Colette Kress took the surprise step of providing guidance more than a year out, which at 70% was sufficient to send the stock surging.