Nvidia may have exceeded Wall Street estimates as its profit jumped — buffeted by the chipmaking dominance that has cemented Nvidia’s place as the poster child of the artificial intelligence boom — but investors seemed less than impressed.
The company reported a net income of to $16.6 billion. Adjusted for one-time items, net income was $16.95 billion. Revenue rose to $30 billion, up 122 percent from a year ago and 15 percent from the previous quarter.
By comparison, S&P 500 companies overall are expected to deliver just 5 percent growth in revenue for the quarter, according to FactSet. Still, Nvidia shares slipped nearly 4 percent in after-hours trading.
Ryan Detrick, chief market strategist at Carson Group, said that despite growing revenue “it appears the bar was just set a tad too high this earnings season.”
“Death, taxes, and NVDA beats on earnings are three things you can bank on,” Detrick said. “Here’s the issue. The size of the beat this time was much 카지노 smaller than we’ve been seeing. Even future guidance was raised, but again not by the tune from previous quarters.”
The company reported second-quarter adjusted earnings per share of 68 cents per share, up from 27 cents a year ago. Nvidia said it expects third quarter revenue to grow to $32.5 billion, plus or minus 2 percent.
Nvidia has led the artificial intelligence sector to become one of the stock market’s biggest companies , as tech giants continue to spend heavily on the company’s chips and data centers needed to train and operate their AI systems.
“The people who are investing in Nvidia infrastructure are getting returns on it right away,” Jensen Huang, founder and CEO of Nvidia, said on a call with analysts. “It’s the best ROI infrastructure, computing infrastructure investment you can make today.”
Demand for generative AI products that can compose documents, make images and serve as personal assistants has fueled sales of Nvidia’s specialized chips over the last year. In June, Nvidia briefly rose to become the most valuable company in the S&P 500. The company is now worth over $3 trillion.