Munster Says Nvidia's Q2 Triumph Outshines Apple's Glory Days, Q3 Guidance 'Lights-Out-Good'

Nvidia Corp. NVDA second-quarter results have left analysts short of adjectives to describe the chipmaker's superlative performance.

What Happened: “I have never seen anything like this,” said Deepwater Asset Management co-founder Gene Munster. “Even Apple during the go-go days of the iPod and iPhone did not see two consecutive quarters of 30% plus revenue guide ups,” he said.

Wednesday, Nvidia reported better-than-expected second-quarter results and guided third-quarter revenue to $1.6 billion, plus or minus 2%. This is compared to the consensus estimate of $12.61 billion, with estimates ranging from $11.35 billion to $15.15 billion.

 The fund manager called the positive guidance for the second straight quarter as "lights out good."

Munster said the guidance was even more impressive because it would have been better if not for production constraints.

See Also: How To Buy Nvidia (NVDA) Stock

What's Next: The standout performance also stirred worries about how long the good times will last. Munster raised the question of how sustainable the growth rates are in the near term. Going by the management's comment, there is visibility into the next year, he said, adding that growth is likely sustainable for a few quarters.

“The pressure point question; How sustainable are the growth rates for the next few years?” Munster said.

Nvidia rose 6.58% to $502.15 in after-hours trading on Wednesday following the earnings announcement, according to Benzinga Pro data.

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