Nvidia shares fall even as revenue more than doubles

Source: Financial Times

Nvidia’s revenue more than doubled in the past quarter to continue its run of blockbuster growth, but its shares fell as the US chipmaker failed to beat the highest expectations for what has become one of Wall Street’s most closely watched companies.  

The Silicon Valley-based company sought to reassure investors that it would see “several billion dollars” in revenue this fiscal year from the next generation of its powerful artificial intelligence chips, despite hitting production problems.  

Revenue in the three months to July 28 was $30bn, up 122% from a year ago and ahead of analysts’ forecasts of $28.7bn. In the third quarter, Nvidia is expecting $32.5bn in revenue, plus or minus 2%, only just ahead of analysts’ consensus expectations.

Some investors had been looking for an even higher revenue forecast in the run-up to Wednesday’s report. Nvidia’s shares fell in after-hours trading by as much as 8% following a call with investors, potentially wiping more than $200bn off its market capitalisation.  

“Everybody’s racing to the future . . . It is our responsibility to help the world get there.” said Nvidia chief executive Jensen Huang.

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