Nvidia earnings beat, shares fall

Published On Aug 28, 2024, 4:51 PM

Nvidia reported impressive second quarter earnings, with an adjusted EPS of $0.68 and revenue of $30 billion, both exceeding analyst expectations. The company's data center business significantly drove growth with a revenue of $26.3 billion, which is a 154% increase year-over-year. Nvidia also boosted its revenue guidance for the third quarter to around $32.5 billion. Despite this strong performance and a $50 billion increase in share buyback authorization, Nvidia's stock declined over 1% following the announcement, attributed to profit-taking or market volatility. The anticipation for their next-generation Blackwell chip production, expected to ramp up in the fourth quarter, is labeled as 'incredible.' For investors, Nvidia seems well-positioned for continued growth in the AI sector, heavily reliant on tech giants for revenue.