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On March 18, 2024, NVIDIA founder and CEO Jensen Huang delivered a keynote address on the latest innovations in artificial intelligence at the developer conference held at the SAP Center in San Jose, California.
Josh Edelson | AFP | Getty Images
Nvidia The company’s shares fell 4.63% in U.S. pre-market trading on Thursday as Second fiscal quarter Gross margins declined slightly, and its revenue exceeded expectations against the backdrop of increasingly higher expectations.
Nvidia on Wednesday reported July quarter revenue of more than $30 billion, up 122% year-over-year.
This is Nvidia’s fourth consecutive quarter of triple-digit revenue growth. But as Nvidia continues to expand rapidly, year-over-year comparisons are becoming increasingly difficult.
Nvidia issued a fiscal third quarter revenue guidance that beat market expectations, coming in at $32.5 billion. This would represent year-over-year growth of 80%, but a slowdown from the June quarter.
At the same time, the company said that full-year gross margins would be “around 70%.” Analysts expected full-year gross margins to be 76.4%, according to StreetAccount.
However, Analysts say In order to see a post-earnings increase in stock price, Nvidia will have to far exceed everyone’s expectations.
Before Thursday’s pullback, Nvidia’s stock price had soared, rising more than 150% so far this year. The stock has risen more than 750% since the beginning of 2023, becoming one of the biggest beneficiaries of the artificial intelligence boom. Large technology companies have been increasing their investments and buying Nvidia’s graphics processors to train large artificial intelligence models.
The decline in Nvidia’s shares also dragged down shares of semiconductor companies around the world, including memory maker Samsung and chip maker Taiwan Semiconductor Manufacturing Company It fell on Thursday.
Nvidia addressed another concern during its earnings call — the reported delay of its next-generation Blackwell AI chip.
“In the fourth quarter, we expect Blackwell to be in the billions of dollars in revenue,” Nvidia Chief Financial Officer Colette Kress said on a conference call with analysts.
The company also announced $50 billion stock buyback program.
– CNBC’s Kif Leswing contributed to this report.
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