Nvidia Stock Falls Amid Q3 Forecasts
Despite Record Sales, Nvidia Stock Falls AndAmid TakesQ3 Down OthersForecasts
The Facts
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.
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. Either way, there's good reason to be cautious.
While Nvidia has undoubtedly faced a sobering reality check as its latest earningsprojections report fell short of sky-high expectations., Despitecausing strong growth, the company's stock tumbled,to tumble and sending ripples through the tech sector, andthis affectingis othermerely a temporary setback. The AI chip giant's long-linkedterm firmsprospects are optimistic as it will continue to be a trailblazer in the booming AI industry.