Nvidia's Stock Plummets

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Koushik Korampalli

September 1, 2024

Written by Yusuf M.

Est read: 0 minutes

Following Nvidia’s Q2 Earnings report, shares fell by 6%
The Earnings report was not however disappointing
- Revenue rose 15% from Q1
- In the 3 months to July 28^th, revenue hit $30bn, up 122% YoY$
  - Forecasts predicted this figure would be $28.7bn
- They forecasted $32.5bn in Q3
- EPS exceeded estimates and reached 68 cents
- Net income reached $16.67bn with gross profit margin at 75.5%
- By Q2 FY25 they expect to more than double both quarterly revenues and net income.
Many investors were looking for more optimistic forecasts
- In after-market trading the share price fell by 6%
- many believe that this is an illogical dip in price, as Nvidia does not seem to be struggling to grow
Nvidia’s latest generation of chips, Blackwell is highly anticipated. However, they had to delay the release of this
- Despite this, CEO Jensen Huang said the production issue would not halt the plans to accelerate developments in technology
- Blackwell plans to ship by the end of this year
- Nvidia warned of a potential dip in margins coming soon, which may have contributed to the fall in stock price