Nvidia earnings could spark a nearly $300 billion swing in the stock, Goldman says
Business InsiderAUG 13 2024
NVidia shares fell around 3% Thursday, underwhelmed by the firm's third-quarter forecast and despite its second-quarter results beating expectations.Nvidia shares briefly fell over 4% Thursday, underwhelmed by the firm's third-quarter forecast and despite its second-quarter results beating expectations, before recovering to $122.56, or down 2.43%.
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 chipmaker's shares had fallen around 6% on Wednesday, with forecasts placing next quarter's revenue at $32.5B — sitting on the bottom end of the market's expectations of $31.9B to $37.9B.
Nvidia, which briefly became the S&P 500's most valuable firm in June, grossed $30B in the second quarter, expecting the third-quarter figure to hit $32.5B.Contrary to this forecast, Nvidia — which briefly became the S&P 500's most valuable firm in June — grossed $30B in the second quarter, a 122% increase over the same period last year.
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. Either way, there's good reason to be cautious.
While Nvidia has undoubtedly faced a sobering reality check as its latest projections fell short of sky-high expectations, causing the company's stock to tumble and sending ripples through the tech sector, this is merely a temporary setback. The AI chip giant's long-term prospects are optimistic as it will continue to be a trailblazer in the booming AI industry.