Loup Ventures

About the Author Loup Ventures

At Loup Ventures, research is in our blood. The spirit of our team has always lived on the curiosity to discover new insights that yield investment opportunities. For years we did this on Wall Street, focused on public tech companies. Now we invest in private frontier tech companies, but public companies like Tesla, Nvidia, and others are also meaningful innovators in frontier tech. These public companies are shaping the emergence of AI, robotics, autonomous vehicles, and AR/VR just as much as early stage startups. As a result, we’ve always kept a watchful eye on public market participants to inform our private investment strategy. Gene Munster is a managing partner and co-founder at Loup Ventures. Prior to Loup Ventures, Gene was a managing director and senior research analyst at Piper Jaffray where he covered technology companies including Apple, Amazon, Google and Facebook. During his 21-year tenure, Gene received many acknowledgements including: Top Stock Picker from Forbes, Best on the Street from The Wall Street Journal, and was widely recognized for his work on Apple. Gene holds a bachelor’s degree in finance and entrepreneurship from University of St. Thomas.

Gene Munster: Key Takeaways From Nvidia (NVDA) Earnings


By Gene Munster

Nvidia (NVDA) reported April results that were essentially in-line with the Street and effectively guided in-line for the first time in a year.

Takeaways:

  • We remain long-term positive on the story given Nvidia is still positioned to capitalize on providing hardware to enable the undeniable themes of AI, autonomy, and gaming.
  • We continue to believe there’s a risk to the company’s full-year guidance.
  • The company continues to work through inventory challenges based on the demand headwind from crypto declines. Concurrently, the company is undergoing a product transition to its Turing architecture in the gaming segment.
  • While the July guidance was in line with the Street, it was below management guidance issued in February. For July, the company now expects revenue to be down 18% y/y, compared to previous implied guidance of down 10%.
  • The revenue trend appears to be moving in the right direction (down 31% y/y in April and guidance calls for July down 18% y/y). The company expects to return to modest growth in October.
  • Nvidia seemed optimistic that cloud gaming would improve it’s gaming segment, not hurt it. The company’s GeForce Now cloud gaming platform, still in beta, has 300K MAUs and an additional 1M players on the waitlist.
  • In addition to operating its own gaming platform, Nvidia is supplying Microsoft, Google, and Amazon datacenters with GPUs that are likely to be used in their respective cloud gaming platforms. Near-term, cloud gaming platforms will likely increase the addressable PC gaming market and are not expected to have a significant negative impact on the demand for high-end gaming graphics cards.

 

Disclaimer: We actively write about the themes in which we invest or may invest: virtual reality, augmented reality, artificial intelligence, and robotics. From time to time, we may write about companies that are in our portfolio. As managers of the portfolio, we may earn carried interest, management fees or other compensation from such portfolio. 

 

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts