Zaid

So this shows that Nvidia's customers aren't just buying their chips, but they're also buying entire AI systems.

And speaking of Nvidia's customers, from this earnings report, we learned that the hyperscalers accounted for over 50% of Nvidia's data center revenue.

The hyperscalers include Microsoft, Meta, Amazon, and Google.

So Nvidia is making half the revenue from just four companies.

We're gonna talk more about that in a bit.

Overall though, if you zoom out, Nvidia ended their fiscal year with over $215 billion in revenue and $96.7 billion in free cashflow, which is just nuts.

I mean, across the board, this was a dominant quarter, and management doesn't expect things to slow down anytime soon.

The company expects Q1 revenues to come in at $78 billion, which is higher than the $73 billion that analysts were expecting.

Now, Nvidia's stock did initially pop around 2% to 3% after their earnings came out on Wednesday afternoon.

But then by Thursday, the stock had dropped more than 5%.

And then on Friday, the stock dropped another 4%.

So despite beating on every metric across the board, Nvidia stock is down almost 10% following their earnings report.

So let's get into the bear case and why investors are suddenly so nervous about Nvidia going forward.

All right, so if Nvidia is printing money and crushing expectations, why did the stock lose nearly 10% of its value in two days?

Well, the thing is the market is forward-looking and right now investors are getting seriously spooked by a few looming risks when it comes to AI.

I think the market is kind of going through an identity crisis.

On one hand, AI is an incredible technology, and it's getting better every month.

And companies are embracing it and spending hundreds of billions of dollars on it.

But on the other hand, some investors are starting to ask, what if AI being so good is actually bad for the economy?

A few days ago, there was a Substack post by Citrini Research that went mega viral.