By Yahoo Finance Video
Publication Date: 2026-02-04 14:21:00
00:03 Speaker A
And John, you’re a bull on this stock, but I hope you can shed some light here on why the shares are under such pressure this morning. What do you think?
00:11 John
Yeah, I would characterize the earnings as good, not great. Um, I would say, you know, some of the disappointment, you know, even though they posted very strong top line and bottom line numbers is, um, the quarter included $390 million of China MI 308 revenues. If you exclude those 308 uh revenues from China, uh, the data center number was was in line. So, um, I think investors were looking for more upside there, uh, released to the at least to the data center side. And then secondly, you know, they’re having to invest uh a lot of R&D and Ox dollars, obviously to stay competitive with Nvidia. You know, Ox was up uh roughly 40% for the quarter in the guide. Um, so there wasn’t as much uh operating leverage on the guidance as you would have expected because of that level of investment.
01:07 Speaker A
I I I I want to follow up on China before we get more into that investment because the company sort of also made clear like we had this China revenue this quarter, but we don’t have a lot of visibility into how consistent that revenue is going to be. Not surprising because of the back and forth, right? So, are you modeling any of that China revenue going forward?
01:34 John
Uh there is going to be $100 million of uh MI 308 China revenues in the first…
