Nvidia’s three-month revenue record of $30 billion has not managed to quell the tech stock-selling spree on Wall Street. As of this morning, Nvidia fell over 8%, despite reporting stronger than expected earnings.
BREAKING: Nvidia stock, $NVDA, falls over 8% despite reporting stronger than expected earnings.
The company posted EPS of $0.68, above expectations of $0.65, on revenue of $30.0 billion, above expectations of $28.9 billion.
The stock has now erased $250 BILLION in market cap… pic.twitter.com/3wKayC5moQ
— The Kobeissi Letter (@KobeissiLetter) August 28, 2024
Simon French, head of research at Panmure Liberum, echoes a common sentiment among analysts, stating that the latest earnings indicate “that rate of growth was starting to slow.” Nvidia outperformed analysts forecasts by increasing revenue by 122% compared to the same period last year. Soon after publishing earnings on Wednesday, Nvidia’s CEO, Jensen Huang, exclaimed that “generative AI will revolutionize every industry,” alluding to an exclusive “watch party” in Manhattan, where Huang gained the title of the “Taylor Swift of tech.”
Alvin Nguyen, senior analyst at Forrester, told the BBC that Nvidia’s impressive three-month report is not sufficient to grease its currently well-oiled semiconductor production process. “A thousand use cases for AI is not enough. You need a million,” Nguyen added. Nguyen remarked that Nvidia’s efficient ecosystem sets it apart from it’s emerging competition from the East for the time being, but industry giants like Intel could “chip away” at Nvidia’s market share if they developed a better product.
