Key Quotes from NVDA's 2Q 2023 conference call - extracted/made with AI

What were management's best quotes?

• "This is one part of our software stack. And this is, if you will, the run time that just about every company uses for the end-to-end of machine learning from data processing, the training of any model that you like to do on any framework you'd like to do, the inference, and the deployment, the scaling it out into a data center."

• "And then lastly, because of our scale and velocity, we were able to sustain this really complex stack of software and hardware, networking and compute and across all of these different usage models and different computing environments. And we're able to do all this while accelerating the velocity of our engineering. It seems like we're introducing a new architecture every two years. Now we're introducing a new architecture, a new product just about every six months."

• "VMware's hundreds of thousands of enterprise customers will have access to the infrastructure, AI and cloud management software needed to customize models and run generative AI applications such as intelligent chatbot, assistants, search and summarization."

• "We also announced new NVIDIA AI enterprise-ready servers featuring the new NVIDIA L40S GPU built for the industry standard data center server ecosystem and BlueField-3 DPU data center infrastructure processor."

What are some solid follow-up questions for when I meet with management at a conference?

• How much unfulfilled demand currently exists, and can you provide more specifics on the multiples of demand versus supply that some customers are experiencing?

• What measures are being taken to address the supply constraints, and when do you anticipate supply-demand equilibrium will be achieved?

• Can you elaborate on the mentioned visibility into next year, particularly regarding order backlog or customer commitments?

• Given concerns about a potential pause in demand in the out years, what evidence can you provide to support sustained growth in the Data Center business?

• Can you clarify the current percentage breakdown of Data Center revenue by customer type (CSPs, consumer Internet, enterprise) and how it compares to last quarter?

• Regarding the DGX Cloud, what has the customer reception been like, and can you share any metrics on its momentum?

• What is the current run rate of the software business, and how significant is its contribution to margins?

• Can you provide more details on the expected incremental supply coming online in the next year and the percentage increase in supply quarter-over-quarter?

• With the approval of an additional $25 billion in stock repurchases, what is the strategic rationale behind this decision, and how should investors think about capital allocation priorities moving forward?

• Given the increase in operating expenses, primarily due to compensation and benefits, how are you managing cost structure to maintain profitability while investing in growth areas?