NVIDIA Earnings Announcement...12 Consecutive Quarters of Record Sales, But What About After-Hours Stock Movement?
Speakers
Choi Ho
— Vice President
Summary
The video analyzes NVIDIA's Q1 FY26 earnings, which beat consensus but showed no margin expansion. The analyst notes NVIDIA is becoming a quality stock with a 20-28x PE range. He highlights that ecosystem partners in networking and optical (Marvell, Coherent, Corning, Lumentum) have higher leverage. Other news items (robotics, AI glasses, foreign investor data) are briefly covered but not investment theses.
- NVIDIA reported 85% revenue growth and 65.9% operating margin, in line with expectations.
- Guidance for Q2 was slightly above consensus, but margins remain stable without a step-up.
- The analyst sees NVIDIA's valuation range as 20-28x PE, with 20x being an attractive entry.
- NVIDIA's ecosystem partners, especially in optical networking, are expected to outperform.
- Marvell, Coherent, Corning, and Lumentum were named as key beneficiaries.
- The hosts discuss AI infrastructure bottlenecks and the complementary role of CPUs.
- Other topics include Hyundai's robot deployment, Samsung's AI glasses, and foreign investor trends.
- No actionable investment ideas were presented for the Korean market or other sectors.
Trade Ideas
NVDA valuation range 20-28x PE.
NVIDIA is transitioning into a quality stock with a valuation range of 20-28x forward PE. Below 20x is attractive, above 28x becomes burdensome. EPS step-ups are unlikely soon, limiting upside momentum, but the stock remains a core holding within a range.
NVIDIA ecosystem partners have higher leverage.
NVIDIA's ecosystem partners, particularly in networking and optical components (Marvell, Coherent, Corning, Lumentum), will see higher leverage and momentum than NVIDIA itself. These companies benefit from long-term contracts, co-packaged optics investments, and the expansion of NVIDIA's platform into new areas like AI agents and 6G. The bottleneck and new theme creation in the AI supply chain amplify revenue and margin improvements for these partners.
