Despite Record Sales, Nvidia Stock Falls And Takes Down Others
Despite Record Sales, Nvidia Stock Falls And Takes Down Others
The Facts
NVidia shares fell around 3% Thursday, underwhelmed by the firm's third-quarter forecast and despite its second-quarter results beating expectations.
The chipmaker's shares had fallen around 6% on Wednesday after its second-quarter results showed revenues rising 122% over the same period last year.
The Spin
The market's reaction to Nvidia's narrower-than-usual revenue forecast highlights the sky-high expectations for the AI giant. While some investors see this as a sign of overvaluation, others view it as a natural correction in a still-strong market.
Nvidia has faced a sobering reality check as its latest earnings report fell short of sky-high expectations. Despite strong growth, the company's stock tumbled, sending ripples through the tech sector and affecting other AI-linked firms.