Nvidia Exceeds Second-Quarter Expectations, But Growth Moderates.
Wall Street responded coolly to Nvidia’s earnings report, with the company’s shares dropping more than 4% in after-hours trading, just one hour after the close of regular market operations.
On Wednesday, the U.S. semiconductor giant Nvidia released its second-quarter fiscal results, surpassing market expectations, though its growth appears to be moderating.
After tripling its revenue in recent quarters, the Santa Clara-based group managed to double it this time (+122% year-over-year), according to the earnings statement published after Wall Street’s close.
Despite this impressive growth, Nvidia’s expansion rate remains unmatched within the sector.
Nvidia generated $30 billion in revenue between April and July, well above the $28.8 billion anticipated by analysts, according to the consensus gathered by FactSet.
Net income for the period reached $16.6 billion (+168%). On a per-share basis, the key market reference, earnings came in at $0.68, significantly surpassing the $0.61 estimated by analysts.
For the third quarter, Nvidia forecasts revenue of $32.5 billion, also exceeding the market’s expectation of $31.7 billion.
For over two years, this microchip giant has consistently exceeded market expectations quarter after quarter.
Nvidia’s results are driven by the demand for its graphics processing units (GPUs), chips with extraordinary computational capabilities that are essential for the development of generative artificial intelligence (AI).
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