NVDA - Nvidia: Why Broad-Based Demand Will Reverse The Post-Earnings Slump

• Nvidia has extended steep declines despite reporting blockbuster fourth quarter earnings and a stronger-than-expected growth forecast for the current period on Wednesday evening.
• Investors were likely taken back by the slight weak spot in Nvidia's adjusted gross margin for Q4, which came in at 67%, falling short of consensus estimates of 67.1%.
• Yet, Nvidia's fundamentals remain strong with robust broad-based demand across all of its core operating segments that continue to outstrip supply.
• Specifically, continued growth in higher-margin data center revenues buoyed by increasing AI workloads is expected to compensate for the fourth quarter mishap. Meanwhile, further easing of industry-wide supply chain constraints through fiscal 2023 will accelerate Nvidia's monetization of robust demand across all segments.
• Paired with continued expansion of its Omniverse strategy, the Nvidia stock is expected to regain momentum in the latter half of the calendar year with further upsides ahead.

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