- AI chip giant Nvidia shares fall despite record sales
- Nvidia’s shares fell by 6% in after-hours trading despite record sales
- They reported revenues of $30 billion for a three-month period, more than doubling from last year
AI chip giant Nvidia shares fall despite record sales
Nvidia’s shares dropped by 6% in after-hours trading despite the AI chipmaker posting record sales of $30 billion over a three-month period, more than doubling its revenue from the same period last year. This figure exceeded analysts’ expectations of $28.7 billion. Nvidia has been a major player in the AI boom, pushing its market value above $3 trillion.
However, some analysts, including Simon French from Panmure Liberum, suggest that Nvidia’s rapid growth may be starting to slow, which contributed to the decline in its share price.
“It’s less about just beating estimates now,” said Matt Britzman, senior equity analyst at Hargreaves Lansdown. “Markets expect them to be shattered and it’s the scale of the beat today that looks to have disappointed a touch.”
Announcing the latest results, Nvidia chief executive Jensen Huang said: “Generative AI will revolutionise every industry.”
Nvidia’s earnings reports have become highly anticipated events on Wall Street, often leading to a surge in trading activity.