Nvidia demand saw no pause, moved beyond 'hyperscalers'

Nvidia (NVDA) released its first quarter results on Wednesday afternoon, beating Wall Street expectations and announcing a 10-for-1 stock split. Yahoo Finance spoke with CEO Jensen Huang, who reiterated the company's powerful demand for its products worldwide.

Yahoo Finance Anchor Julie Hyman joins Morning Brief to break down her conversation with Huang and what Nvidia's earnings means for the company and the broader market moving forward.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Nicholas Jacobino

Video transcript

Our top story today.

NVIDIA's booming business, the A I darling knocked first quarter earnings out of the park.

CEO Jensen Huang spoke to Yahoo Finance exclusively and had a lot to say about the demand picture.

Copper demand grew throughout this quarter after we announced Blackwell, and so that kind of tells you how much demand there is out there.

People want to deploy these data centres right now.

They want to put our GP US to work right now and start making money and start saving money.

And so so that that demand is just so strong.

And the numbers match that narrative record.

Quarterly revenue more than doubled from a year ago, largely attributable to massive gains in the company's data centre business and video.

Also announcing a 10 for one stock split here with more colour from that exclusive interview, we have Julie, Hy and Julie.

You spoke with Jensen.

What were your biggest?

Dan Halley, Tech editor Dan Halley and I had the chance to talk to Jensen a bit about the quarter that they had and what's coming next, and the comments that you just heard him make about Hopper and Blackwell are really key here, So that's my first take away.

There are no pauses in orders.

This had been one of the main concerns from analysts going into this report.

With the next generation of chips and software coming out later this year, something that video is calling Blackwell.

There was a concern.

Well, would customers put a pause on the so called hopper chip sets as they were awaiting Blackwell and Jensen?

Pretty much said, Uh uh, that's not happening.

That's why he was careful to say, Even after we introduced Blackwell, there was still strong demand for Hopper.

So that's takeaway number two.

Take away.

Take away number one.

I can still count despite my late night last night.

Takeaway number two demand is broadening beyond hyper scaler, one of the hyper scR.

It's a big cloud companies Amazon alphabet, Microsoft Azure, the company said in its press release.

The demand is broadening that they're seeing other industries now, like health care, start to deploy these chips in their data centres as well.

That said, still, 40% of the company's data centre revenue did come from the hyper scalers.

But again, Jensen was careful to talk about the other industries that are using this as well.

And then, finally, he was also careful to push back another against another concern of analysts and investors.

And that has to do guys with the switch from so called training to infer.

In other words, right now we're in the A I training phase.

We're starting to get into infer.

But in other words, these large language models are learning for lack of a better term.

They're being trained.

Then it will switch to them, actually working to them, making predictions, making links, doing the work.

There had been some thinking that maybe these very complicated, very expensive NVIDIA chips wouldn't necessarily be deployed for that.

But he said, over and over again, our chips are being used for inference now.

So really a lot of what the work he was doing yesterday was sort of pushing back against some of these narratives, which was interesting.

It certainly is interesting, really great interview there.

It was a lot of great insight and colour on the latest quarter and also what they expect to see going forward.

What also stuck out to you was what he had to say about some of those real life U use cases, and it was actually applauding some of the efforts that we've seen from Tesla, right?

Yes, was.

And within the data centre business, aside from the hyper scalars, the biggest industry vertical, if you will, that is.

Using these chips is automotive.

And he called out Tesla specifically because of the training that it's doing for full self driving and particularly autonomous vehicles.

Broadly, this is what he had to say about that.

One of the things that's that's really revolutionary about about the the version 12 of of Tesla's, uh, full self driving is that it's an end to end generative model, and it learns from watching videos surround video and it it learns about how to drive, uh, end to end and generate using generative A I, uh uh, predict the next the path and the and the, uh, how to steer the, uh, how to understand and how to steer the car.

So, in other words, you know, there are videos that the models are watching.

I mean, we keep using these human words, but you know, as though they have eyes, but in other words, they, you know, they scan through these thousands, if not millions of different video scenarios, to try to learn what to do in that situation.

These GP US that NVIDIA makes are powering that process at the data centre level.

And as he said, You know, eventually we're gonna have a lot more autonomous cars.

So it's not just be a Tesla.

It's going to broaden way beyond that, right?

And just coming back to this report here for NVIDIA, I mean, the headlines are still they're all glowing.

What are you seeing as potential downsides here, though?

I mean, even though he pushed back against those various concerns, it doesn't mean that they're not valid.

You know, there is still competition coming from some of these hyper skiers that are going to be making their own chips as well as other competitors within the chip industry.

That's something to consider within the report itself.

Gaming Reven did miss a little bit, the company said, that had to do with seasonally lower GP U sales for laptops.

So that's something to keep an eye on.

And then there's just, you know, the bigger they get, the more they have grown, the harder the comparables are going to get on the out years.

So if you compare, say, the first quarter of this year in which we saw that incredible more than 400% increase in earnings per share, you compare it with estimates for its fiscal first quarter 2026 which will be this time next year only looking for a 29% gain and then actually, that 2027 number should be a decline of 6%.

In other words, um, analysts are predicting that growth is gonna get smaller and then a couple of years out will actually flip to a decline.

The further away we get, the harder it is to predict.

Obviously, um, but and him sort of emphasising that inference will be a key use case for NVIDIA products, maybe changes that narrative.

There are certainly analysts who believe that NVIDIA's numbers will be bigger than that.

But, you know, we're just gonna have to see if it can keep growing at this incredible rate.

Incredible indeed.

I mean, it got me wearing the leather jacket today.

I was gonna say Jensen there who wore it better.

Definitely Jensen Jensen.

But I tried.

I tried.

It's a time to shine.

Hi, Julie.

Thanks so much.