Nvidia (NVDA) shares are appearing in extended trading Wednesday after beating earnings estimates for the first quarter of fiscal 2025, reporting $26 billion in revenue ($24.69 billion expected) and adjusted profit of $6.12 per share ($5.65 expected per share). The chip giant also announced a 10-for-1 stock split that will take place on June 7.
Defiance ETFs CEO and CIO Sylvia Jablonski joins Market Domination Overtime to talk about Nvidia’s earnings numbers and the positive upside this news will have on technology and market megatrends (^DJI, ^IXIC, ^GSPC ) as a whole.
“AI is the biggest megatrend we have and it’s going to impact every industry. And these numbers tell us that that’s happening, right? All of these different industries are very likely increasing the breadth of demand from just technology companies to just revolutionizing the way how we do other things, whether it’s healthcare, finance, financial security, financial reporting, banking, risk trading, quantum computing, supercomputing – all of that,” elaborates Jablonski, calling Nvidia “the market benchmark.”
For more expert insights and the latest market action, click here to watch this full episode of Market Domination Overtime.
This post was written by Luke Carberry Mogan.
Video transcript
Alright, NVIDIA just reported a drop in earnings revenue, increasing its dividend and a stock split and joining us now is CEO and CCIO Sylvia Jablonski of Defiance ETF S.
Uh Sylvia, it’s great to have you.
To hear.
So, you know, printing inventory is already up 90% this year.
Expectations were very high, but they exceeded the report, they beat Sylvia, at least initially here.
Investors like what they see.
Let’s see your initial reaction.
What do you think of the report, Sylvia?
Yes.
Hello Josh.
I mean, that’s Goldilocks, right?
I think, you know, they beat both numbers, they beat profits, they grew revenues, they were up 200% over the year.
A seller’s performance.
Look, I think AI is the biggest megatrend we have and it will impact every sector that exists.
And these numbers tell us that this is happening, right?
It’s very likely that all of these different sectors will increase the breadth of demand just from technology companies to just revolutionize, you know, how we do other things, whether it’s healthcare, finance, financial security, financial reporting, banking, risk trading, you know, computing. quantum, supercomputing, all of that.
So the Goldilocks number, Jensen Wong, is the man of the year.
I think it’s the market bellwether and I think investors are happy with it.
I mean, this post-market move is great and what I would worry about and Julie mentioned this many times, you know, the stock price was close to earnings and then, you know, you don’t know where it’s going to land.
But a lot of times it has to do with data center and outlook and I mean, 22 versus 21 and then outlook, you know, surpassing two.
So I think we’re, I think we’re doing really well here.
Plus, the split is awesome, right?
It allows investors who had been in the market to enter at lower prices.
Yes, I was going to ask you about the breakup, Sylvia.
How much do you think that, I mean, particularly for me, I wonder and maybe you have some thoughts on this, uh, that it seems like more of a movement for retail investors, right to get into this.
Is there any importance for institutional investors as well?
So it’s really interesting because, you know, my lifelong career in capital markets, the answer is always that backward and forward splits don’t matter.
You know, at the end of the day you have the same thing in terms of notional value: the amount of money you have is the same.
Right.
It’s just a kind of exchange for more shares at a lower price.
But I think so, 100% aimed at retail investors.
Young investors, individuals can now enter the stock market.
It’s very difficult, you know, difficult to buy a stock that’s trading at these prices.
And I think, you know, it’s in the case of NVIDIA, this is going to matter because I think it’s going to open up new demand and it’s a popularity trade.
It’s a popular action and yes, I think it will be important for them.
I accept it and the cash dividend is also good.
This will be important for institutions.
Yes, no one, no one sleeps with return on capital.
Uh Sylvia, let me ask you this too.
I’m just curious.
Um, what do you think this report means, Sylvia, for the broader market?
What, what in video reports?
Co Jensen Wong Julie will be speaking to him soon along with her own Dan Howley.
What are some of the ripple effects you see in the market?
Yes, I can’t wait for this interview.
I’m actually super excited.
He must be feeling good about it.
Uh, this report.
This will be a good one.
But I think this will boost the NASDAQ tomorrow.
Um, I think in the near term we’re going to get some continued momentum from these NVIDIA earnings.
It will be good for magazine seven, good for the NASDAQ’s momentum.
And in general, you know, some like in 2022 when all the tech stocks were crashing and Apple did well, it was kind of a tide that lifted all boats, right?
And last year and you know, it’s been Tesla over time and this is just the year for, for video and video does, well, people feel good about the market this year and you know, we’ll see what happens. in the next year.
But this is this year’s trade.
So in the short term, we get some positive momentum from this.
I think it’s funny because it was an exchange last year too.
Sylvia.
Yes, I think it was a trade last year too.
But I think, I think the hype, like the chat, the day they announced the GP T chat last year was when this thing really started to go parabolic.
I think we have to leave it there.
Sylvia.
Thank you very much for this instant reaction.
Really appreciate it.
