Nvidia results exceed expectations

2 minutes ago

Nvidia reported second-quarter profits and revenue that beat analysts’ estimates, as data center revenue hit another record high, driven by rising demand for artificial intelligence.

The AI ​​chipmaker posted revenue of $30.04 billion in the second quarter, more than double the year-ago period. Net income of $16.6 billion also more than doubled from the year-ago period.

Although expectations were largely exceeded, growth on both the revenue and profit lines has slowed compared to previous quarters.

How Nvidia Stock Has Reacted to Recent Earnings Reports

45 minutes ago

Nvidia has beaten market expectations in its two 2024 earnings reports, sending its stock price soaring.

Shares rose more than 9% on May 23, the day after the chipmaker reported record quarterly revenue and profit and announced a 10-for-1 stock split. They rose more than 27% in the following two weeks.

The company’s fourth-quarter fiscal 2024 results were even more explosive. Shares rose 16% in a single day, adding a record $272 billion to the company’s market cap. By the end of the week, Nvidia’s market value had increased by more than $300 billion, and within two weeks, shares had risen by more than 30%.

But big results aren’t always enough for Wall Street. Nvidia shares fell in late November 2023 as concerns about restrictions on exports of advanced semiconductors to China overshadowed quarterly revenue, which missed Wall Street estimates by nearly $2 billion.

–Colin Laidley

Potential Impact of Blackwell Chip Delay

54 minutes ago

Reported delays in the development of the chipmaker’s next-generation Blackwell system could have a “modest” impact on quarterly results and near-term outlook, according to analysts at Raymond James.

Researchers at Morgan Stanley recently suggested that the impact could be so negligible that executives “may not even recognize tactical setbacks.”

Regardless, analysts are almost unanimously positive about the stock’s long-term prospects.

Of the 61 analysts who have covered the stock, 47 have given it a “buy,” the highest rating possible, according to FactSet. Nine have said they are “overweight,” a slightly less emphatic endorsement, and five have rated the stock “neutral.” No Wall Street analysts currently have a negative outlook on Nvidia shares.

Nvidia leads tech stocks lower on rising earnings

55 minutes ago

Shares of Nvidia fell about 1.8% with half an hour left in the session on Wednesday, leading a broader decline for big tech stocks.

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

The company’s shares have rallied in the weeks following its two most recent earnings reports, boosting the broader stock market. Investors are hoping another quarterly earnings report can work the same magic on Thursday and reignite the tech rally that has sent stocks to a series of records this year.

Nvidia shares have faced some headwinds in recent months. Shares fell more than 25% in July and early August as changing interest rate expectations rattled the stock market.

Shares have since recovered, but are still about 10% below their intraday highs in June.

What do analysts expect from the report?

1 hour 7 minutes ago

Analysts are forecasting revenue to grow to $28.81 billion, 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 earnings per share (EPS) falling sharply, largely due to the company’s 10-for-1 stock split.

Nvidia’s data center segment has been growing rapidly amid increasing demand for its advanced computing technology to support AI. Data center revenue reached an all-time high of $22.6 billion in the first quarter of fiscal year 2025, surpassing the previous record set in the quarter before that.

Analysts expect the data center division to post revenue of $25.17 billion in the second fiscal quarter, a new record as revenue more than doubled from the same period last year.

Investors will also be watching for updates on reported delays affecting the company’s new Blackwell AI chip. News of the delay sent the chipmaker’s shares plummeting earlier this month, though Nvidia has said production is still on track to ramp up in the second half of the year as planned.

–Naomi Buchanan