Kunjan Sabani

It is.

And just for context, that $500 figure was already about 5% to 6% above consensus as of yesterday.

These new deals that they announced, the three to four new deals, mostly on the sovereign, could add around billions of dollars on top of that if they were able to execute well and the supply keeps coming on.

Fundamentally, no.

I mean, this was one of the more bullish quarters or earnings we have seen from Nvidia, not just in terms of the 3Q, 4Q numbers, which, by the way, they blew past the loftiest buy-side bogeys, but reaffirming their 500 billion target.

The key point that people are missing is holding gross margin to mid-70s, even when wafer, HBM, packaging costs are all rising.

If you're able to hold that and execute that, that speaks a lot about their pricing power.

I just want to play you a soundbite from Jensen Huang about Vera Rubin.

Yeah, when you think about the total cost it takes to build a data center, I mean, we're talking about 50% to 60% just going to one company, taking up all that bomb, how important that is and what that mode speaks to.

I don't think the debate around ASIC and GPU is going to go away, but this should give some...

key factual data points that despite, we are going to see a future where companies will do risk management and vendor diversity and have ASICs or a second merchant supplier, but the dominant share will still go to NVIDIA.

Yeah, the data center strength was really the highlight, as you mentioned, Ed.

When you look at the royalty revenues from the data center last fiscal year, it was about 10 percent of royalties.

We expect this now to get to almost 18 to 20 percent.

So a 2x increase in one year by the end of fiscal 26.

What's really driving here in the quarter, they signed a lot of

css license deals basically they're licensing their ip to a lot of data center customers whether it's been the merchant customers the asic designers soft bank and and even chinese customers a lot of these licenses when eventually get converted into royalty revenues hence creating a tailwind for layering more and more royalty revenues their share is significantly increasing quarter over quarter and is as we know nvidia is going to launch their servers with the blackwell uh the blackwell servers are

the cpu in that servers are going to be based on the rmip you look at amazon ramping its gravidon chip that's based on the rmip google's xm chip based on the rmip so they're seeing significant share gains here which eventually sets them up to have strong royalty growth in the future from the data center segment

We did.

So if you look at the numbers this quarter, software brought in somewhere about 180 million in royalty revenues, 50 million jumped from just last quarter.