NVDA Earnings Surprise

NVDA reported another quarterly earnings surprise.
Revenue: 96.2B (Expected:92.38B, surprise approx. +4%)

Adjusted EPS: 2.22 (Expected:2.10–$2.22)

Adjusted Gross Margin: 75%

Data Center Revenue: $89.0B (Expected: $85.86B)

Compute & Networking: $88.30B, Hyperscale: 48.71B, Edge Computing:7.20B, AI Cloud/Industrial/Enterprise: $40.31B

Q3 Guidance

Revenue: $105.84B–110.16B (Midpoint108.0B ±2%, guidance beat consensus of $105.15B)

Adjusted Gross Margin: 73.5–74.5% (Slight drop from 75% in the previous quarter — seemingly reflecting memory cost burdens)

Adjusted Operating Expenses: approx. $9.0B

While the revenue/EPS surprise itself was great, concerns seem to be rising that the financial structure is becoming increasingly complex and risky. This comes as lower margin guidance (is even a 1% difference not allowed? T_T), a surge in supplier commitments/MOUs (since MOUs aren't actual contracts?) (+134%), and even a new type of financial agreement (?) with OpenAI—a residual value guarantee worth 105B—overlap... It is a kind of contingent liability where if OpenAI goes bankrupt and cannot pay lease fees, Nvidia would have to cover up to105B on their behalf. However, this $105B is a contingent cap, not an actual payout... Anyway, the results are out. Phew....