KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Headline Results (Q2FY26)
Revenue: $46.7B (+56% YoY, +QoQ) — beat consensus.
GAAP Net Income: $26.4B (+59% YoY).
Gross Margin (Non-GAAP): 72.7% (–300bps YoY, +140bps QoQ), above guidance.
Key Driver: Data Center ($41.1B, 88% of total).
Yet, stock slipped ~3% after hours — a case of “stellar results, tougher bar.”
Revenue Breakdown
Data Center: $41.1B (+56% YoY, +5% QoQ).
AI Compute: $33.8B (+50% YoY, –1% QoQ) → weakness due to H20 halt & Hopper→Blackwell transition.
Networking: $7.3B (+98% YoY, +46% QoQ) → standout growth, driven by NVL72 rack deployments & Spectrum-X Ethernet.
Gaming: $4.3B (+49% YoY, +14% QoQ).
Pro Visualization: $0.6B (+32% YoY).
Automotive/Robotics: $0.6B (+70% YoY).
3 Key Themes for Investors
1. Networking = Second Growth Curve
Networking revenue outpaced all major standalone vendors.
InfiniBand nearly doubled QoQ; Spectrum-X annualized >$10B.
AI systems shifting to rack-level integration, making networking as critical as GPUs.
2. China Headwinds Persist
China share down to 6% of revenue (from double digits).
Singapore invoicing surged to 22% (serving U.S. demand).
No H20 sales baked into Q3 guidance. If approved, could add $2–$5B upside.
3. Product Roadmap Intact (Blackwell → Rubin)
GB300 (Blackwell Ultra) ramping, ~1,000 racks/week, boosting Q3.
Rubin platform in fab (GPU, CPU, NICs, switches, photonics). Mass production set for 2026.
Guidance (Q3FY26)
Revenue: $54B (above $53.5B consensus).
Non-GAAP Gross Margin: 73.5% (vs Q2: 72.7%).
Non-GAAP Net Income: ~$30.1B.
Upside Risk: China H20 reinstatement → potential $2–5B revenue lift.
Market Read-Through
Why shares slipped despite the beat:
AI compute revenues dipped QoQ (optics of slowing demand).
Blackwell transition creates temporary lumpiness.
Expectations are sky-high — the “valuation bar” keeps moving.
Medium-term positives:
Networking growth adds diversification beyond GPUs.
Blackwell ramp + Rubin launch keeps Nvidia two generations ahead of rivals ($AMD, $AVGO, $TSM).
Margins holding above 70%+ show pricing power in AI infrastructure.
Takeaway for investors: Nvidia remains the indispensable AI infrastructure play, but near-term stock moves hinge on China licensing clarity and execution of the Blackwell ramp. Long-term visibility into Rubin (2026) provides a strong structural growth story.
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