2024-08-29 19:28:35
Nvidia’s financial results easily exceeded analysts’ estimates. The company that produces semiconductors crucial to the development of productive artificial intelligence signaled higher-than-expected performance in the next quarter as well. Despite this, its stock… took a dive.
Nvidia said it expects about $32.5 billion in revenue in the current quarter, compared with analysts’ estimates of $31.7 billion. If its forecast is confirmed, it would be an 80 percent increase over the same period last year.
In the previous quarter the income her they jumped 122% to $30.04 billionafter three consecutive periods of annual growth of more than 200%.
The net profits more than doubled at $16.6 billion, or 67 cents per share, in the quarter, from $6.18 billion, or 25 cents per share.
The course of the stock
Shares of Nvidia are up more than 150% this year after rising nearly 240% in 2023. Overall since 2022 the stock’s value has increased ninefold. Its market cap recently topped $3 trillion, and Nvidia was briefly the world’s most valuable public company, though it’s now second only to Apple.
But why was the stock down 7% after the results were announced? Because investors had set the bar for the company much higher than analysts. In the last 24 hours there were estimates on Wall Street that wanted Nvidia’s quarterly revenue to have jumped to $33 billion to $34 billion.
Hopper and Blackwell
Revenue in Nvidia’s data center business, which includes its artificial intelligence processors, rose 154 percent from a year earlier to $26.3 billion, accounting for 88 percent of total sales.
Nvidia chips such as the H100 and H200 are used in the vast majority of generative AI applications such as OpenAI’s ChatGPT and are in strong demand. Many customers, however, are waiting for Nvidia’s next-generation AI chip, called Blackwell.