Poland – 2024/11/13: In this photo illustration, the NVIDIA company logo is shown on a smartphone screen. (Photo by Piotr Swat/SOPA Images/LightRocket via Getty Images)
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Nvidia Shares fell in US premarket trading on Thursday after the tech giant’s third-quarter earnings failed to impress investors.
Shares of the chipmaker were down 3.21 percent at 5:03 a.m. ET, beating both the top and bottom lines, following the release of Nvidia’s quarterly results on Wednesday.
Revenue came in at $35.08 billion, up 94% year-over-year and beating LSEG analysts’ forecast of $33.16 billion. Adjusted earnings per share were 81 cents, beating analysts’ expectations.
Other chipmakers fell on the back of the market’s reaction to Nvidia’s third-quarter results. Shares of Intel, Qualcomm And Micron Technology All fell 1% or more in price, while AMD There was a decrease of 0.6 percent.
Nvidia has largely cornered the market for high-powered chips powering the world’s most advanced artificial intelligence models, such as OpenAI’s ChatGPT.
Despite nearly doubling year-over-year sales, Nvidia’s third-quarter results showed a slowdown from previous quarters. Nvidia previously reported growth of 122% in the second quarter, 262% in the first quarter, and 265% in the fourth quarter of 2023.
Darren Nathan, head of equity research at Hargreaves Lansdown, said in emailed comments on Wednesday that the drop in Nvidia’s share price “isn’t even enough of a salve for some investors,” adding that he expects That the stock will bounce back after the market opens.
“NVIDIA has had fantastic returns for shareholders for many years now, and it’s hard to see a big hole in terms of investment right now,” Nathan added.
Analysts are looking forward to the much-anticipated launch of Nvidia’s next-generation chip called Blackwell. On the firm’s earnings call, CEO Jensen Huang said chip demand outstripped supply.
— CNBC’s Kif Leswing contributed to this report.
