Nvidia Shares Fall Nearly 7% in After-Hours Trading

Nvidia share♌s s🍰teadily lost ground in late trading following the release of the earnings report.

One potential reason for the decline: The company's projection for third-quarter revenue, while topping analysts' consensus view, may have fallen short of increasingly lofty expectations in recent days.

Nvidia projects revenue in the ♎current quarter of $32.5 billion, plus or minus 2%. That compares with the roughly $31.9 billion Wall Street had estimated and with $18.1 billion posted in the year-ago third quarter.

However, Morgan Stanley had said earlier this week that, in order to satisfy investors, Nvidia was going to have to announce revenue guidance for the fiscal third quarter that was about $2 billion higher than the consensus view among analysts. "(A)ssuming that all is well with new products our sense is that the stock needs guidance in the $33-34 (billion) range to be unchanged," Morgan Stanley analysts said.

Nvidia shares fell 6.9% to $📖ℱ116.95 in extended trading Wednesday.

Cloud Providers Made Up 45% of Data Center Sales

Chief ꦉFinancial Officer Colette Kress said roughly 45% of the record data business sales were from 𝓡cloud service providers.

Consumer, internet, and enterprise company customers accounted 🅠for half the data center revenue.

The surge in data center revenue comes as tech giants increase spending to invest in AI infrastructure. The breakdown of what type of customers are driving data center sales to new highs offers insight into the 澳洲幸运5官方开奖结果体彩网:state of AI demand.

-Naomi Buchanan

Hopper Demand Strong Ahead of Blackwell Shipments

Asked during the earnings call about demand for Hopper, the predecessor for the Blackwell chips, Chief Executive Officer Jensen Huang said that Nvidia's customers "simply can't afford" to wait on the new AI chips when Hopper adoption will save them money.

He added, that due to the generative AI market, when companies have the opportunity to build advancing computing infrastructure with Hopper, rather than general purpose computing, "that decision is relatively clear."

Meantime, CFO Colette Kress said that Nvidia expects "several billion dollars" from Blackwell sales in the fourth quarter.

-Naomi Buchanan

Demand for Nvidia’s Blackwell Chip Outpaces Supply

Nvidia CFO Colette Kress said during the earnings call that "demand for Blackwell platforms is well above supply.”

Kress ad🐲ded that Nvidia expects this to continue into next year due to high demand, even as production ramps up and ava💖ilability improves.

-Kara Greenberg

Retail Investors Bought Big Into Nvidia Before Earnings: Vanda

Retail-investor purchases of Nvidia’𒁃s share𒈔s ahead of today’s earnings report dwarfed buying of other high-profile tech shares, according to Vanda Research.

Retail investors picked up a net $1.4 billion worth of the shares in the five days through Tuesday, Vanda said. Six companies, led by Tesla, saw net retail purchases of between $100 and $200 million apiece.

“Our data make it very clear that self-directed retail traders have been a key driver of the rebound in Nvidia shꦏares,” Vanda wrote Wednesday afternoon. “But now individuals’ positions look relatively stretched and thus pose a risk to the stock 🎃should institutional players show muted appetite.”

-David Marino-Machison

Nvidia Says Plans for New Blackwell AI Chip Still on Track

After concerns about reported delays in Nvidia’s Blackwell AI chip 澳洲幸运5官方开奖结果体彩网:sent Nvidia's stock price tumbling earlier this month, the chipmaker said Wednesday it began shipping some samples of its Blackwell chip in the second quarter, and expects to "ship sev📖eral billion dollars in Blackwell revenue" during the fourth quarter as production ramps up. 

Nvidia’s highly anticipated Blackwell is expected to help cement its AI leadership, with CEO Jensen Huang previously saying he expects Nvidia's Blackwell platform could be the "澳洲幸运5官方开奖结果体彩网:most successful product" in the company’s history.

Compensation, Benefits Drove Nvidia Expense Growth

Compensation and benefit drove growth in expenses at Nvidia in Q2,🦩 according to published commentary by CFO Cole🅰tte Kress.

Operating expenses according to generally accepted accounting principles rose 48% year-over-year and 12% sequentially, according to the commentary, while non-GAAP operating expenses rose 52% and 12%, respectively.

“These increases we⭕re largely driven by compensation and benefits, reflecting growth in employees and compensation,” the commentary read.

-David Marino-Nachison

Revenue Performance by Business Segment

Here’s how Nvidia reported its second-quarter revenue and revenue growth by business segme🔯nt:

• Data center: $26.3 billion, up 16% from Q1 and 154% from last year’s Q2
• Gaming and AI PC: $2.9 billion, up 9% from Q1 and 16% from last year’s Q2
• Professional visualization: $454 million, up 6% from Q1 and 20% from last year’s Q2
• Automotive and robotics: $346 million, up 5% from Q1 and 37% from last year’s Q2

-David Marino-Nachison

Data Center Sales Boosted by Big-Tech Spending

The fresh r🧔ecord in Nvidia’s data center sales—revenue juಌmped 154% from a year ago to $26.3 billion—comes as many of its big tech customers ramp up spending on infrastructure to support their AI capabilities.

澳洲幸运5官方开奖结果体彩网:Microsoft, Alphabet, Meta, and Amazon♍ have all told investors they expect to boost spending on AI infrastructure, particularly data centers, and they’r🧔e all buyers of Nvidia’s chips.

-Kara Greenberg

Nvidia Board Approves $50 Billion Buyback

Nvidia’s board approved a꧅ new $50 billion share buyback plan, the company said in its latest earnings release.

The company had $7.5 billion worth of previously authoriz🎃ed repurchases as of the end of the first half, Nvidia said.

-David Marino-Nachison

Nvidia Sets Revenue Outlook for Third Quarter

Nvidia guided investors toward fiscal third-quarter revenue of $32.5 billionꦚ, plus or minus 2%, the company said as part of the release of its latest financial results. Wall Street was looking for roughly $31.9 billion, according to data compiled by Visible Alpha.

Nvidia reported revenue of $18.1 billion in the ♊year-ago t𒉰hird quarter.

-David Marino-Nachison

Nvidia Stock Slips After Results Land

Shares of Nvidia slipped in the minutes shortly after the release of the chip giant’s latestᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚ financial results.

Nvidia’s stock was recently down more than 4% in extended trading. It finished Wednesday’s regular session down about 2%, still 🌌leaving it up more than 150% for the year so far.

The company said second-quarter revenue was $30 billion, more than double last year’s quarter and higher than Wall Street expected. Diluted earnings per share, at 67 cents per share, also beat 澳洲幸运5官方开奖结果体彩网:the Street’s expectations.

-David Marino-Nachison

Nvidia Results Top Expectations

Nvidia reported fiscal second-quarter earnings an💯d revenue that exceeded analysts’ estimates, as data center revenue reached another record high, driven by surging demand 👍for artificial intelligence.

The AI chipmaker posted second-quarter revenue of $30.04 billion, more than doubling from tꦜhe same period a year ago. Net income at $16.6 billion als🅷o more than doubled from the year-ago period. 

While handily exceeding expectations, growth on both the top a🍸nd bottom lines has slowed from 🍃previous quarters.

-Kara Greenberg

How Nvidia Stock Has Reacted to Recent Earnings Reports

Nvidia has blown past market expectations in its two earni♉ngs reports in 2024, sending the stock shaꦓrply higher.

Shares jumped more than 9% on May 23, the day after the chipmaker reported 澳洲幸运5官方开奖结果体彩网:record quarterly revenue and profit, and announced a 10-for-1 stock split. They𒆙 went on to rise more than 27% in the following two weeks.

The company’s 澳洲幸运5官方开奖结果体彩网:fiscal 2024 fourth-quarter results were even more explosive. Shares jumped 16% in one day, adding a 澳洲幸运5官方开奖结果体彩网:record $272 billion to the company’s 澳洲幸运5官方开奖结果体彩网:market cap. By the end of the week, Nvidia’s market value had increased by more than 澳洲幸运5官方开奖结果体彩网:$300 billion, and within two weeks itꦦs shares had risen more than ♔30%. 

But stellar results aren’t always enough for Wall Street. Nvidia shares fell in late November 2023 when concerns about restrictions on the export of advanced semiconductors to China overshadowed quarterly revenue that exceeded Wall Street’s estimates by 澳洲幸运5官方开奖结果体彩网:nearly $2 billion.

-澳洲幸运5官方开奖结果体彩网:Colin Laidley

Potential Blackwell Chip Delay Impact

Reported delays of the chipmaker's next-generation 澳洲幸运5官方开奖结果体彩网:Blackwell system could have a "modest" impact o♛n quarterly results and the near-term outlook🌳, according to analysts at Raymond James.

Morgan Stanley researchers, on the other hand, recently said the impact may be so negligible that executives may "not even acknowledge tactical setbacks."

Either way, analysts are almost unanimously bullish on the stock's long-term prospects.

Of the 61 analysts who have rated the stock, 47 have rated it a "buy," the highest possible rating, according to FactSet. Nine have said they're "overweight," a slightly less emphatic endorsement, and five have rated the stock "neutral." No Wall Street analyst currently has a negative outlook on Nvidia stock.

Nvidia Leads Tech Stocks Lower in Earnings Run-Up

Nvidia shares were down about 1.8% with half an hour to go in Wednesday's session, leading a broader decline for large-cap tech stocks.

Microsoft (MSFT), Apple (AAPL), Alphabet (GOOGL), Meta Platforms (META) and Amazon (AMZN) were all losing ground. The iShares Semiconductor ETF (SOXX) was down 1.3%.

The company's stock soared in the weeks after its two most recent earnings reports, giving a boost to the stock market as a whole. Investors will be hoping that another blowout 澳洲幸运5官方开奖结果体彩网:quarterly earnings report can work the same magic on Thursday and reignite the tech rally that has lifted stocks to a series of recor🎀ds this year.

Nvidia's stock has faced some headwinds in recent months. Shares tumbled more than 25% in July and early August as shifting 澳洲幸运5官方开奖结果体彩网:interest-rate expectations shook up the stock market.

Shares have since rebouౠnd♔ed, though they remain about 10% below their all-time intraday high set in June.

What do Analysts Expect from the Report?

Analysts project revenue will grow to $28.81 billion, 澳洲幸运5官方开奖结果体彩网:according to estimates compiled by Visible Alpha, which would be more than double Nvidia's revenue in the same period a year ago. Net income is also expected to more than double from a year earlier to $14.93 billion, with a sharp decline in 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) expected primarily as a result of the company's 10-for-1 澳洲幸运5官方开奖结果体彩网:stock split.

Nvidia's data center segment has grown rapidly amid rising demand for its advanced computing tech to support AI. Data center revenue reached a record high of $22.6 billion in the first quarter of fiscal 2025, surpassing its previous record set the quarter prior.

Analysts expect revenue for the data center business to be $25.17 billion f�🐠�or the fiscal second quarter, which would set a new record high with sales more than doubling from the year-ago period.

Investors will also be looking for updates on reported delays affecting the company's new Blackwell AI chip. News of the delay sent 澳洲幸运5官方开奖结果体彩网:s𒁃ent the chipmaker's stock tumbling  earlier this month, though Nvidia 澳洲幸运5官方开奖结果体彩网:has indicated production is still on track to ramp in the second half of the y༒ear, as planned.

-澳洲幸运5官方开奖结果体彩网:Naomi Buchanan