The company's turnover for the second quarter of the year amounted to 46.7 billion dollars, equivalent to 445.4 billion kronor. The analysts' average forecast was 46.1 billion dollars, reports CNBC.
The profit per share landed at 1.05 dollars, to be compared with the average forecast of 1.01. However, the market's highly inflated expectations meant that the share fell by about three percent in after-hours trading on the New York Stock Exchange.
They beat expectations – again – but judging by the price reactions, it's not the big fireworks, says Frida Bratt, savings economist at the online broker Nordnet.
Of course, it's a fantastically good report, but the market didn't expect anything else. Since there are also invisible expectations and they didn't quite hit those.
The hype remains
As the world's most highly valued company – with a market value of over 4,400 billion dollars – Nvidia weighs heavily in both American and global indexes.
The AI hype remains. There is still a high demand, which both this and other tech giants' reports show, but investors probably need to prepare themselves for the fact that the growth rate will decrease even for companies like Nvidia, says Frida Bratt.
Politically exposed
So far, the chip manufacturer has a significant lead over its competitors and according to the company's own figures, the margin is expected to be maintained at 70-75 percent. However, Frida Bratt notes that there are some uncertainties for a politically exposed company like Nvidia.
You have to give away 15 percent of the revenue from China sales of advanced chips to the US state. It's a completely new playing field that the state takes a part of the revenue, she says.
