Nvidia shares sink despite record sales of $30bn

Published On Aug 28, 2024, 8:13 PM

Nvidia, a leading AI chip manufacturer, reported record revenues of $30 billion for the last quarter, exceeding analysts' estimates of $28.7 billion, marking a 122% year-over-year sales growth. However, despite these impressive figures, Nvidia's stock price dropped by 6% in after-hours trading and continued to decline in early trading the following day. Analysts attribute the fall in stock price to concerns over a potential slowdown in growth and production delays for its next-generation AI chip. Nvidia's shares have still risen significantly this year, being up around 150%. The company's CEO emphasized the transformative potential of generative AI, while analysts caution that unless Nvidia continues to sustain its high growth rates, its valuation may be at risk. Additionally, competition from rivals like Intel could pose further challenges in the future.