Shares in Nvidia has fallen despite the artificial intelligence (AI) chip giant comfortably surpassing expectations by more than doubling its sales. The company reported record revenues of $30 billion (£24.7 billion) over a three-month period.
Nvidia has been one of the biggest beneficiaries of the AI boom, with its stock market value soaring to over $3 trillion. However, despite the strong performance, the company’s share price declined by 6% in after-hours trading in New York.
Analysts had predicted sales growth of $28.7 billion for the three months leading up to 28 July. Nvidia exceeded this forecast, with revenues increasing by 122% compared to the same period last year. Nevertheless, the market reacted negatively, with some analysts suggesting that the pace of growth might be starting to slow.
Simon French, head of research at Panmure Liberum, commented, “While analysts have grown accustomed to Nvidia delivering ‘spectacular’ sales growth, the latest results indicate that rate of growth was beginning to decelerate.”
Matt Britzman, senior equity analyst at Hargreaves Lansdown, added, “It’s no longer just about beating estimates. Markets expect them to be shattered, and the scale of the beat today seems to have disappointed slightly.”
Announcing the results, Nvidia’s chief executive, Jensen Huang, stated, “Generative AI will revolutionise every industry.” However, Mr French told the BBC, “If you’re going to raise expectations that high, then you’ve got to keep growing at spectacular rates.” He noted that while Nvidia’s current AI chip, known as Hopper, is performing well, the next-generation Blackwell chip has encountered production delays, which may have contributed to the after-hours sell-off on Wall Street.
Nvidia’s quarterly earnings reports have become a highly anticipated event on Wall Street, often leading to frenzied trading activity. The Wall Street Journal even reported plans for a “watch party” in Manhattan to follow the announcement. Mr Huang, known for his signature leather jacket, has been nicknamed the “Taylor Swift of tech” due to his growing prominence in the industry.
Alvin Nguyen, senior analyst at Forrester, told the BBC that both Nvidia and Mr Huang have become the “face of AI.” While this has been beneficial for the company, Mr Nguyen warned that it could also negatively impact its valuation if AI technology fails to deliver on its promises after firms have invested billions of dollars.
“A thousand use cases for AI is not enough. You need a million,” Nguyen said. He also noted that Nvidia’s first-mover advantage has given it market-leading products, which its customers have relied on for decades. However, he cautioned that competitors, such as Intel, could potentially “chip away” at Nvidia’s market share if they develop superior products, although this would take time.
Source ~ BBC
Nneoma Udensi
Follow us on:
Gbadebo Rhodes-Vivour has condemned the commercialisation of GMO seeds, warning of threats to Nigeria’s food…
Oleksandr Usyk has secured victory over Tyson Fury in Riyadh, successfully defending his heavyweight championship…
Albania plans a one-year TikTok ban from January after a schoolboy’s death sparks concerns over…
A suspect accused of killing five people by driving into a crowded Christmas market in…
A US Navy F/A-18 Hornet was mistakenly shot down over the Red Sea by the…
NNPC has reduced petrol ex-depot price to N899 per litre, sparking competition with Dangote Refinery…
View Comments
Custom Auctions Is Up Again and Granting Nigerians the
Privilege to Own Vehicles at Affordable Rates.opportunities to get a car of your choice at a minimum price E-Auction Vehicles/Cars For Sale of Rice...Motor
Mama Africa #17,000 •Tomatoes Rice # *15,000* •Cap Rice #15,000 •My Food #17,000 •Mama Gold #17,500 •Ade Brazil #15,000 •Elephant Gold #15,000 •Royal Umbrella #15,000 Etc.
Golf3= 400,000
((067893) (+234_707__893)
Toyota Exterra=850,000
Toyota Camry big daddy=650,000
Toyota Venza= 1.7million
Toyota Avalon=850,000
Toyota Rav4=950,000
Toyota Prado=1.3million
TOYOTA HILUX=2million
Toyota Sienna=850,000
TOYOTA 4-RUNNER=950,000
Toyota Corolla=650,000
Toyota Matrix= 700,000
Toyota Highlander=950,000
Toyota Picnic=500,000
Tacoma 1.850,000
Toyota Hiace Bus=950,000
Toyota Tundra=1.5million
Toyota Sequola=900,000
BMW 5-series=1.960,000
BMW 3-series=1.640,000
BMW X6=2.670,000
Ford Edge=700,000
Ford Escape=600,000
Honda Elantra=600,000
Honda Baby-Boy=700,000
Dyna Truck 900k
TIPPER Head 6mill
Honda Accord=550,000
Honda CRV=650,000
HONDA CIVIC=500,000
HONDA EVIL-SPIRIT=750,000
HONDA ODYSSEY=500,000
Honda Pilot=850,000
Nissan pathfinder=800,000
Nissan Amanda=750,000
Infinity=950,000
Benz C250=N1.300,000
Benz C300=1.6MILLION
Benz ML350=2 million
Benz ML300=1.5 million
Benz ML550=2.6million
Mercedes-Benz C-Class ₦1.3Million
Mercedes-Benz E-Class ₦1.8Million
Mercedes-Benz GLK ₦3.Million
Es330 1.6
Lexus C5 350=950,000
IS250 1m
Lexus Rx300=1.2 million
Lexus Rx330=1.5 million
Is350 2mill
Gx470 1.8mill
Lexus Rx350= 2 million
ES350 2mill
(08O 6739 9O9O )) ((_-_)