AI chip giant Nvidia's record sales fail to lift shares

Despite exceeding expectations and achieving a significant increase in sales, shares in Nvidia have experienced a decline.

In a stunning development, Nvidia has reported an unprecedented surge in revenues, reaching an astounding $30bn (£24.7bn) within a mere three-month timeframe.

With its stock market value skyrocketing to over $3 trillion, the company has emerged as one of the primary beneficiaries of the AI boom.

According to Simon French, head of research at Panmure Liberum, Nvidia's latest results suggest that the previously "spectacular" sales growth is slowing down. Analysts have become accustomed to Nvidia's impressive performance in the past.

According to analysts, sales growth for the three months ending on July 28 was projected to reach $28.7 billion.

In a remarkable feat, Nvidia's revenues have soared by an impressive 122% compared to the previous year's corresponding period.

In after-hours trading in New York, Nvidia's share price experienced a 6% decline.

"It's no longer solely about surpassing estimates," commented Matt Britzman, a senior equity analyst at Hargreaves Lansdown. "The markets had high expectations, but today's beat seems to have fallen slightly short."

In a recent announcement, Nvidia's CEO Jensen Huang expressed his belief that generative AI has the potential to revolutionize every industry.

During an interview with the TGE, Mr French emphasized the importance of maintaining impressive growth rates when setting high expectations.

In a recent statement, the speaker acknowledged the success of the current AI chip, known as Hopper. However, they also mentioned that the upcoming Blackwell chip has encountered production delays, which may have contributed to Wall Street selling off the stock after hours.

Nvidia's quarterly results have become a highly anticipated event that triggers a flurry of activity on Wall Street, with investors eagerly buying and selling shares.

According to the Wall Street Journal, a watch party was scheduled for Manhattan. Mr Huang, known for his iconic leather jacket, has been compared to the "Taylor Swift of tech."

According to Alvin Nguyen, a senior analyst at Forrester, both Nvidia and Mr. Huang have emerged as prominent figures in AI, representing the forefront of this technology.

According to Mr Nguyen, while the company has seen benefits from this, there is also a potential risk to its valuation if AI fails to meet expectations after significant firm investments.

"The potential applications of AI are limitless." A million is what you require.

According to Mr. Nguyen, Nvidia's position as a pioneer in the industry has given it a competitive edge, resulting in market-leading products that customers have trusted for many years. He also highlighted the presence of a robust software ecosystem surrounding Nvidia's offerings.

According to the speaker, Nvidia's market share could be threatened by competitors like Intel if they could create a superior product. However, the speaker acknowledged that this would only happen after some time.