Have to admire $NVDA communication strategy today.
- Choosing to give early guidance for >70% revenue growth for 2027 will help drive the supply chain to accelerate multi-year fab build-outs.
- The guide also makes what is essentially a reset in gross margin expectations to low-70% from ~75% today palatable for investors.
- The disclosure of the 2 million GPU multi-year Amazon deal, days after Jalapeno, shows that even strong multi-generation ASIC programs such as Trainium can coexist with continued large-scale GPU deployments.
The guide of today should get Nvidia to ~$17 of EPS next year. Only 13x current $219 share price.