Cramer Flags Nvidia's AI Software Edge Driving Growth, Even as Margins Strain
Jim Cramer breaks down NVIDIA's mixed Q2 results: revenue $96 billion and EPS $2.46 beat estimates, with data center revenue up 117% to $89 billion and the ACIE segment up 138% to $40.3 billion, while guidance calls for 70% full-year growth. However, free cash flow fell to $21.3 billion and margins dropped 38 percentage points to 22%, raising questions about memory costs and AI-chip competition. The stock rose in after-hours trading on the strength but closed about 4.6% lower; Cramer also highlighted Huang's note that Nvidia's chips carry upgradable software, a potential tailwind for future demand.
