NVDA EPS Call: Not A Fan of Jensen's Stretching of the Truth
Regarding NVDA’s EPS call, it’s clear that the company is financially supporting OpenAI and Anthropic to maintain demand for its GPUs. Once demand from OpenAI and/or Anthropic slows, NVDA shares will most likely tumble.
I have color-coded the below PDF which is the transcript from the Q&A portion of NVIDIA’s EPS call. Green means I agree with NVDA’s comments, Yellow means I partially agree/disagree. Red means I completely disagree.
NVIDIA got cute on the call when questions about Gemini’s use of TPU chips. While Google certainly uses NVDA chips in its Google Cloud service and prior Gemini models, Gemini 3.0 uses in-house Google TPU chips.
I don’t like the fact that Jensen said there is no market for TPU’s outside of Google, that NVIDIA is the “safe choice” in so many words. Jensen sounds like IBM in decades past when the saying was: “Nobody gets fired for buying IBM” as IBM got disrupted. I don’t know that NVDA gets completely disrupted, but Google’s TPU will chip away at NVDA market share, Groq’s LPUs will make a mark in the inference market, other companies will make their own chips, including OpenAI. AMD is a real competitor. These things all put downward demand pressure on NVDA chips.