Nvidia earnings beat expectations but fail to impress investors

Nvidia’s highly anticipated quarterly earnings beat expectations Wednesday but failed to impress investors, with its share price sliding in after-hours trading. 

The chipmaker raked in $30 billion in revenue in the three-month period ending in late July, up 15 percent from the last quarter and up 122 percent from the same period last year. This topped Wall Street’s forecast of $28.7 billion. 

“NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI,” CEO Jensen Huang said in a statement Wednesday. 

“Across the entire stack and ecosystem, we are helping frontier model makers to consumer internet services, and now enterprises,” he added. “Generative AI will revolutionize every industry.” 

However, Nvidia’s earnings don’t appear to have impressed investors, with the chipmaker’s share price dipping 7 percent in after-hours trading Wednesday night.  

The company, whose chips are central to the artificial intelligence (AI) boom, has seen a massive rally on the stock market since the beginning of the year, with its share price up 160 percent. 

Nvidia’s market capitalization crossed $3 trillion for the first time in June, and it briefly became the most valuable company in the world. Its market capitalization currently sits at $3.09 trillion, and the chipmaker is the second most valuable company behind Apple.