Nvidia (NVDA) shares are popping in Wednesday’s extended trading after beating earnings estimates for its fiscal first-quarter 2025, posting revenue of $26 billion (expected $24.69 billion) and adjusted earnings of $6.12 per share (expected $5.65 per share). The chip giant also announced a 10-for-1 stock split to occur on June 7.
Defiance ETFs CEO and CIO Sylvia Jablonski joins Market Domination Overtime to talk Nvidia’s earnings figures and the positive upside this news will have on tech megatrends and the market (^DJI, ^IXIC, ^GSPC) as a whole.
“AI is the biggest megatrend that we have and it’s going to impact every single industry out there. And these numbers tell us that that’s playing out, right? All of these different industries are very likely increasing the breadth of demand from just tech companies to just revolutionizing how we do other things, whether healthcare, financial, financial security, financial reporting, banks, risk trading, quantum computing, supercomputing — all of it,” Jablonski elaborates, calling Nvidia “the bellwether of the market.”
For more expert insight 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
All right, NVIDIA just reporting a beat on earnings revenue, raising its dividend and a stock split and joining us now is defiance ETF S CEO and Cio Sylvia Jablonski.
Uh Sylvia, it is great to have you.
Listen.
So, you know, you went into this print stock was up 90% already this year.
The expectations were sky high but they beat a report, they beat Sylvia at least initially here.
Investors like what they see.
Let let’s get your initial reaction.
What do you, what do you make of the report, Sylvia?
Yeah.
Hi Josh.
I mean, this is goldilocks, right?
I think that, you know, they, they beat on both numbers, they beat on profits, they’ve been on revenues, they’re up 200% over the year.
Um seller performance.
Look, I think A I is the biggest mega trend that we have and it’s going to impact every single industry out there.
And these numbers tell us that that’s playing out, right?
All of these different industries are very likely, you know, increasing the breadth of demand from just tech companies to just revol revolutionizing, you know, how we do other things, whether health care, financial um financial security, financial reporting, banks, risk trading, you know, quantum computing, super computing all of it.
So goldilocks number Jensen Wong is the man of the year.
I think um the bellwether of the market and I think investors are happy about it.
I mean this this move post market is just great and the thing that I’d be worried about and Julie mentioned this a lot of times, you know, the the stock pricing was around after earnings and then, you know, you don’t know where it’s going land.
But um oftentimes it has to do with data center and outlook and I mean, 22 versus 21 and then outlooks, you know, beating two.
So I think we’re, I think we’re pretty good here.
Plus the, the split is awesome, right?
It lets investors that had fomo get in at lower prices.
Yeah, I was gonna ask you about the split, Sylvia.
How much do you think that, I mean, particularly for I, I wonder and maybe you have some insight into this uh that feels like more of a move for retail investors, right to get in on this.
Is there any importance also for uh institutional investors?
So it’s really interesting because it just, you know, my lifelong career in capital markets, the the response is always that reverse splits and forward splits don’t matter.
You know, you have the same thing at the end of the day in terms of the notional value the amount of money you have is the same.
Right.
It just kind of switches for um, more shares at a lower price.
But I think, yeah, 100% it’s geared towards retail investors.
Young investors, individuals can now get into the stock.
It’s really hard to, you know, hard to buy a stock that’s trading um at these prices.
And I think that, you know, it’s in the case of NVIDIA, it 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 stock and yeah, I think it’s going to matter for them.
I do and the cash dividend is nice too.
That’s going to matter for institutions.
Yeah, no one, no one sleeps on capital return.
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’s gonna be talked to him shortly along with her own Dan Howley.
What are some of the ripple effects you see for the market?
Yeah, I can’t wait for that interview.
Actually, I’m super excited.
He’s got to be feeling good about this.
Uh this report.
That’ll be a good one.
But I think that this is going to drive the NASDAQ up tomorrow.
Um I, I think in the near term we we’re gonna get some continued momentum off of these NVIDIA earnings.
It’s going to be good for the mag seven, good for the breath of the NASDAQ.
And, and in general, you know, a couple like in 2022 when all the tech stocks were crashing and Apple did well that, that was kind of the tide that lifted all boats, right?
And last year and you know, it’s been Tesla throughout time and this is just the year for, for video and the video does, well, people feel good about the market this year and you know, we’ll see what happens next year.
But this is, this is that trade this year.
So short term, we get some positive momentum off of this.
I think it’s funny because it was a trade last year too.
Sylvia.
Yeah, I guess it was a trade last year too.
But I think that, I think the hype, like it’s like the chat, the day that they announced the chat GP T thing in all of last year is when this thing really started to go parabolic.
I think we got to leave it there.
Sylvia.
Thank you so much for that instant reaction.
Really appreciate it.
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