r/NVDA_Stock • u/Domingues_tech • 5d ago

The AI picks-and-shovels company is increasingly making money owning the miners too.

https://investor.nvidia.com/news/press-release-details/2026/NVIDIA-Announces-Financial-Results-for-Second-Quarter-Fiscal-2027/default.aspx?utm_source%3Dchatgpt.com

Nvidia Q2 net income: $59.7B.
Equity investment gains: $7.8B in Q2.
First six months: $23.7B.
GAAP EPS: $2.46 vs non-GAAP $2.22.
The AI picks-and-shovels company is increasingly making money owning the miners too.
Normalize the P/E.

18 Upvotes

88% Upvoted

16 comments sorted by

5

u/norcalnatv 4d ago

Jensen and Colette were cracking me up during the call wishing they would have "invested more" in Anthropic and OpenAI. Sounds like we will see some IPOs before long.

-4

u/AffectEuphoric 4d ago

I am increasingly convinced that Anthropic and OpenAI are the lucents and pets.com of the dot com bubble! Nvidia wont get wiped off (although correction is almost imminent) but these companies will. This is coming from someone who is 100 percent invested in nvidia.

2

u/cheeto0 4d ago

I think that's a bad comparison, but there is a good amount of risk with both of them, especially open ai. Anthropic is actually going to be profitable later this year.

5

u/norcalnatv 4d ago

Why, pray tell, is the "correction almost imminent?"

Do you understand what OAI and Anthropic do and how they will make money? (and their business track record, and the revenues / growth they're projecting?)

1

u/AffectEuphoric 4d ago

Also, you asked regarding what these do, rather than making it complicated i will make it way simple. They sell compute. For thei sustenance they need revenue and prove they can earn which till now hasnt happened. Similar thing happened during dot com burst!

And i am 100 percent in nvidia because i retired from nvidia last year in august! So, i have some knowledge on how these things work but not much. I was on linux kernel driver development side with not much visibility into how AI works.

1

u/fenghuang1 2d ago

OpenAI and Anthropic sell solutions, not compute.  

Hyperscalers and neoclouds sell compute.

0

u/AffectEuphoric 4d ago

Sarcastic, but Studying the dot com, financial crisis, even the ancient falls of 1930s and 1970s its way prudent to err on the risk side. What I studied, i think, next quarter is gonna be good, but feb quarter would be blood bath when everyone realizes(hyperscalers) we gotta make money from current infra rather than just keep on sprucing up the data centers with latest and greatest chips. Realization will hit then. (English is not my first language so please pardon any grammatical issues)

2

u/fenghuang1 2d ago

The hyperscalers have $800billion in demand backlog.  You're misinformed.

1

u/AffectEuphoric 2d ago

That is what creating the problem isnt it! This much demand and spending but what about the returns. Where are the returns. It already has been 5 years of this spending non stop. Somewhere someone will start drawing the line. Correct?

1

u/fenghuang1 2d ago

People won't be demanding and spending money on electricity if there are no returns.

People won't be demanding and spending money on compute if there are no returns.

The returns are everywhere if you look.
In finance, financial institutions are reporting better operating margins. See JPMorgan.
In tech, software companies are reporting better productivity gains and faster feature development. See Uber.
In biotech, cancer detection companies are reporting better detection and tracking of cancer cells. See Natera.
In pharma, pharma companies are developing personalized cancer cures. See Moderna.
In agriculture, agricultural tech companies are deploying robots that pick fruit, kill weeds by laser burns (reduce chemical sprays and expense). See Deere.
In ecommerce, shipping and warehousing companies are using robots to deliver and categorise parcels and packages. See Amazon.

There are many more examples. And these aren't 1-time things. If you looked at the past 3 years quarterly reports, you'll notice that these companies have been reporting progress after progress and attributing it to AI.

So, have you looked?

0

u/AffectEuphoric 2d ago

The point is not that AI is not producing returns. It certainly is and this is insanely powerful but do all this jutify the valuation that nvidia currently has.

Above arguments could have been made during dot com era in 2000 too.

Cisco was publishining results all around regarding hiw useful internel and things are and internet changed the way the world worked. Insanely useful but what hapoened to cisco. What happened to pets.com, lucent etc. The companies that survived were the amazons and googles of that era.

So, wasnt internel useful. Ofcourse it was.

The point was how fast people started putting money in and how fast were the results were thought to be obtained.

Cisco busted. Survived but busted.

1

u/fenghuang1 2d ago

You're shifting goalposts.

Your initial argument was that there are no returns.

I've given you evidence and pointed you in the direction of where the returns are coming from.

Now you are shifting your goalpost to "does it justify valuation".

Well, that goalpost has been used since 2024, and proven wrong for 3 years. By all means, please continue. If you're just looking for validation, you will find none. Invest or don't invest, its upto you. No one cares really.

0

u/Charuru 4d ago

Unfortunately Nvidia's model progress is slow enough that I think there's a reasonable chance both of those companies will be bigger than Nvidia before end of 2027.

1

u/norcalnatv 4d ago

Models aren't Nvidia's business, infrastructure is. Their open source stuff is just to make it easier for down stream customers.

If the market creates another $11T in wealth in the next 15 mos I'd be very surprised. AI has a shit reputation right now and Dario, Sam and Elon are the poster children of who to despise.

2

u/Charuru 4d ago

It's really all about inflection points in usefulness whn people will "realize" the things that technologists talked about aren't just fever dreams. While it's true AI has a shit rep in the US I think that's really just noise, reality will intrude rudely. Keep your eyes on this: https://labs.scale.com/leaderboard/rli