Nvidia’s quarterly forecast was released on Wednesday, and contrary to popular belief, it failed to meet investors’ expectations. As a result, the company’s share fell by 6% in after-hours trading. This affected not only Nvidia but also other tech giants, including AMD, Broadcom, and a few other tech behemoths. Although the company saw heady growth and profit, the results were treated as mixed as the company wasn’t able to perform as expected.
The chief market strategist at Carson Group, Mr Ryan Detric, said, “The size of the beat this time was much smaller than we’ve been seeing. Even future guidance was raised, but again not by the tune from previous quarters. This is a great company that is still growing revenue at 122%, but it appears the bar was just set a tad too high this earnings season.”
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In the last three consecutive quarters, Nvidia recorded revenue growth of over 200%, which has caused investors to set a higher target for the company with every passing quarter.
In a media report, Nvidia’s CEO, Jensen Huang, confirmed that the company’s plan to ramp up their next-gen Blackwell chips production was delayed until the fourth quarter. However, he downplayed the delay in their plans’ impact on the company. He even said the company is shipping its latest Blackwell chip to some of its top partners and customers and is expecting to earn several billions of dollars in revenue from these chips in the fourth quarter, but it did not happen. This further increased the expectations of investors, which didn’t end well for the tech giant.
