Santa Clara, California – Graphics chipmaker Nvidia reported strong second-quarter earnings, exceeding expectations with $30.04 billion in revenue. However, the stock dipped more than 5% in after-hours trading as the company fell short of some analysts’ highest revenue guidance for the third quarter.
Despite missing the lofty Wall Street “whisper number” of $33 billion to $34 billion for Q3 revenue, Nvidia still outperformed with a forecast of $32.5 billion. The company remains a key player in the AI industry, with its earnings closely watched as an indicator of sector trends.
Investors were eager for updates on Nvidia’s upcoming Blackwell chips, the next generation after the Hopper GPUs. While CEO Jensen Huang noted strong demand for Blackwell, production issues impacted gross margins in the past quarter. The company plans to ramp up Blackwell production in Q4, with expectations of generating significant revenue from the new chip architecture.
Analysts were also interested in Nvidia’s existing Hopper chips, which continue to see robust demand from AI companies looking to expand their data center capabilities. Huang highlighted the growing momentum of generative AI and the industry’s acceleration in adopting innovative technologies.
Overall, Nvidia’s earnings demonstrate the company’s resilience in the ever-evolving tech sector. While facing challenges in meeting all revenue expectations, Nvidia remains a frontrunner in AI innovation, poised for growth as it navigates production hurdles and drives technological advancements in the market.