Nvidia reported second-quarter earnings that mostly beat estimates, but the chipmaker’s forecast for next quarter failed to impress Wall Street investors. The company announced second-quarter results after the market closed.
Nvidia’s stock price closed 2.1% lower at $125.61 per share. However, in after-hours trading, Nvidia’s stock price lost 6.89%. The total market value was $3.156 trillion at the close on Wednesday, up from about $1.15 trillion a year ago.
Nvidia’s share price is up 154% so far in 2024 and is up about 3,000% since 2019.
Nvidia’s second-quarter revenue more than doubled from the same period last year. Revenue for the quarter ended July 31 rose 122% year over year to $30.04 billion, beating estimates of $28.70 billion. Revenue in the data center business rose 154% year over year to $26.3 billion, accounting for 88% of total revenue.
Nvidia forecast third-quarter revenue of $32.5 billion, up 2 percent, compared to analysts’ average estimate of $31.77 billion.
The company’s earnings per share (excluding certain items) were $0.68, slightly above estimates of $0.64.
The chipmaker reported second-quarter gross margin of 75.7%, up from 78.4% in the previous quarter and an average estimate of 75.8%. It expects third-quarter adjusted gross margin of 75%, plus or minus 50 basis points.
The company told Reuters that after optimizing the design, it was shipping Blackwell samples to its partners and customers and expected to generate billions of dollars in sales from these chips in the fourth quarter.
Nvidia also announced a $50 billion share buyback.
(With contributions from Reuters)
