Wall Street investors were not impressed by Nvidia’s guidance for the upcoming quarter, despite the chipmaker reporting second-quarter results that were mostly ahead of expectations. Following the bell, the business released its Q2 earnings.
At the closing bell, the price of an Nvidia share was 2.1% down at $125.61 per share. But in the trade that took place after hours, the price of Nvidia’s stock fell 6.89%. Compared to approximately $1.15 trillion a year ago, its total market value as of Wednesday’s end was $3.156 trillion.
In 2024, Nvidia’s stock price has increased by 154%, while it has increased by around 3,000% since 2019.
When compared to the same period last year, Nvidia’s Q2 revenue more than doubled. Its revenue for the quarter ending July 31st increased 122% over the same period last year to $30.04 billion, above projections of $28.70 billion. 88% of its total revenues came from its data centre segment, which saw a 154% YoY growth to $26.3 billion.
In contrast to analysts’ average expectation of $31.77 billion, Nvidia predicted revenue of $32.5 billion, plus or minus 2%, for the third quarter.
Excluding specific items, the company’s earnings per share came to $0.68, which was somewhat more than the $0.64 predicted.
In the second quarter, the chipmaker revealed a gross margin of 75.7%, compared to 78.4% in the prior quarter and an average estimate of 75.8%. In Q3, it anticipates an adjusted gross margin of 75%, give or take 50 basis points.
After making adjustments to its design, the business announced that it was sending Blackwell samples to its partners and customers. According to Reuters, the corporation anticipated making several billion dollars from these chips in the fourth quarter.
Additionally, Nvidia declared a $50 billion share buyback.
