Interview: Post-Earnings Insight with Nvidia CFO Colette Kress

Nvidia CFO Colette Kress discussed the company's financial outlook following its Q2 fiscal 2025 earnings report. She addressed concerns regarding delays in the rollout of the "Blackwell" GPUs, stating that demand for Nvidia's products remains strong, particularly for the existing Hopper GPUs, which continue to be sold due to their necessity in the generative AI landscape. Kress emphasized that Nvidia is not merely a hardware company but a software-centric organization, with a significant portion of its workforce dedicated to software development. This software is crucial for transitioning enterprises to accelerated computing. She acknowledged the challenges of planning for exponential growth in a rapidly evolving market, indicating that Nvidia is focused on capital planning to support product development. Kress also noted that the generative AI wave could lead to increased IT spending, potentially raising corporate IT budgets to 8-10% of revenues, while also suggesting that companies may reallocate funds from less productive areas to invest in AI technologies. Overall, Kress conveyed a long-term vision for Nvidia's role in the ongoing shift towards accelerated computing and AI integration.

- Nvidia's financial outlook remains positive despite delays in Blackwell GPU rollout.

- The company emphasizes its software capabilities, crucial for enterprise transitions to accelerated computing.

- Planning for growth involves careful capital management and product development.

- Generative AI may increase corporate IT budgets significantly.

- Companies are likely to reallocate spending towards more productive AI investments.