Market underwhelmed by NVIDIA’s Q2 revenue and EPS beats

Quick Take

NVIDIA erstwhile again exceeded Wall Street expectations with its Q2 net study connected Aug. 28, surpassing net per stock (EPS) and gross projections. Analysts anticipated an EPS of $0.64, but NVIDIA delivered $0.68, a 6% surprise. Revenue was expected to beryllium $28.73 billion, yet the institution reported implicit $30 billion, a 5% surprise. Despite these awesome figures, NVIDIA’s banal initially dropped arsenic overmuch arsenic 8%, though it has since recovered, trading astir 2% down successful pre-market, according to Google Financials.

According to Bloomberg, concerns regarding accumulation challenges with NVIDIA’s next-generation Blackwell chips person fueled capitalist apprehensions. CEO Jensen Huang has reassured investors, stating that determination volition beryllium tons of proviso by the 4th quarter.

“We’re going to person tons and tons of supply, and we volition beryllium capable to ramp,”

NVIDIA, present valued astatine over $3 trillion, has been the best-performing banal successful the S&P 500, with a staggering 155% YTD return. Vistra Corp is the only different equity that has seen triple-digit returns this year.

However, arsenic NVIDIA continues to bushed net estimates, surprise margins successful EPS are shrinking, which could awesome increasing marketplace caution. Additionally, portion the institution approved a $50 cardinal stock buyback, CEO Jensen Huang has sold $580 cardinal worthy of banal successful caller months, according to Barrons, adding to capitalist unease.

Source: Google

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