About Rajvindra Gill
Rajvindra Gill, then managing director of semiconductor equity research at Needham, appeared on CNBC in August 2022 to discuss NVIDIA ahead of its earnings. He stated that he was "hoping for a kitchen sink quarter," referring to a period where a company takes all expected charges at once. Gill noted continued risks to NVIDIA's October guidance, citing the transition of Ethereum to proof-of-stake and weak demand in China and Europe. He said that gaming headwinds persisted due to a weak Chinese economy and falling GPU pricing, adding that he did not believe the gaming segment was "out of the woods yet." Gill also said he was closely watching NVIDIA's data center business, which had decelerated, and its gross margins after a $3 billion inventory charge.
In a January 2020 appearance on CNBC, Gill argued that any trade resolution, even a suboptimal one, would drive chip stocks higher. He said business in China was "frozen" due to tariff uncertainty and that distribution inventories were at historical lows, suggesting a restocking cycle could follow a trade deal. Gill also cited a return to spending by hyperscalers like Facebook, Google, Microsoft, and Amazon as a positive catalyst for Intel and NVIDIA. He highlighted 5G as a growth driver, stating that RF semiconductor content per phone could increase two to four times, and named Skyworks and Corvo as beneficiaries. Gill also expressed a positive view on Micron, predicting its valuation would expand as the memory market recovered.
Source: AI-verified profile updated from Rajvindra Gill's recent appearances.
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Transcript (6 segments)
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Narrator0:13
Our next guest says this may be a kitchen sink quarter for the chip maker. The managing director of semiconductor equity research at Needham has a buy rating on NVIDIA with a $185 price target.
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Interviewer0:27
We're hoping for a kitchen sink quarter. What would that entail in terms of what NVIDIA says, Raj?
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Rajvindra Gill0:37
We're certainly hoping for a kitchen sink. What Micron spooked us because when they cut numbers we thought they kitchen sinked it but went out and lowered numbers further. I think some continued risk to are weak there. We're hoping the October guide will be a reset. We're also paying very close attention to both gross margins as well as data center. On the data center, it grew 2% and decelerated on a year to date basis. We need to see that business is not slowing down in a meaningful way. On the gross margin they took a $3 billion charge, inventory charge, around 46%. Margins going to look like those are going to be very important.
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Interviewer2:15
You mentioned the transition in proof of stake. In the gaming segment, I think there's a little bit of a crossover. The gaming products, the chips, used for those purposes. What about the end demand for personal gaming and things like that itself? Have we seen a trough?
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Rajvindra Gill2:38
Well, I don't think we're out of the woods yet with respect to gaming, and it's really due to a couple of reasons. I think China is about 25% represents 25% of their install base around the world. The China consumer, we think, still has some challenges. Europe is a big percentage. We need to see those two markets have started to slow down. Pricing has fallen for NVIDIA. A year ago two to three times MSRPs. The pricing now has fallen as more supply has come in. I think we're not out of the woods yet for gaming.
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Interviewer3:55
Got it. We'll see.
