More Tales From Nvidia: Promises, Promises (Issue #243!)
Interesting that Nvidia ($NVDA) apparently has not given revenue guidance a year out in ages, but now all the sudden they give an annual +70% revenue growth number right in front of a theoretical Anthropic IPO filing?
Hmmm..
It’s especially interesting in light of the fact that based on results (inclusive of the DSO spike and declining gross margins), the stock was trading off before they gave this year-out forecast (we covered as posted), which really they have no idea, because nobody ever does. Their own history of blowing up tells you that.
I actually think the whole thing is something of a rig job between Nvidia and Anthropic, because apparently Anthropic is seemingly timing their IPO filing on the back of the Nvidia quarter as Nvidia needs Anthropic to be a public company to raise the money and help keep the shell game going.
Even Nvidia cannot finance the whole thing on their own and buy all of their own revenue, although they sure seem to be trying.
Post Script: Also in regard to the get Anthropic public, 70% growth forecast for next year, how does industry CAPEX grow +70%? Balance sheets are shot, cash flows are negative, there seems to be no capacity for memory, and no more power capacity and states are now turning down data center requests as well. And then there are all the other industry issues that remain, including the move to open source and lack of underlying economics.
PPS:
More later as I have a lot of my plate today.
Position: Short NVDA (VS)
