Nvidia (NVDA) ein stock fall plus de broader market top Thursday, even though de chipmaker post better-than-expected third quarter earnings den provide ein strong outlook give de current quarter ein day earlier. Dis dey come as surprise give plenty people, especially since sales for AI chips dey 'off de charts'.
Shares of Nvidia close out de trading day down 3.15% after briefly turning higher at de start of de day. De company ein "Magnificent Seven" compatriots also fall on de day. Wetin dey cause dis shakeup?
Nvidia's Fourth Quarter Projections
For de fourth quarter, Nvidia dey project revenue of $65 billion plus or minus 2%. Wall Street dey expect revenue of $62 billion. Dis show say Nvidia dey confident in ein continued growth, especially for AI technology.
CEO Jensen Huang's Statement
"Blackwell sales dey off de charts, and cloud GPUs dey sold out," CEO Jensen Huang talk for ein statement. "We've enter de virtuous cycle of AI. De AI ecosystem dey scale fast — with more new foundation model makers, more AI startups, across more industries, and in more countries. AI dey go everywhere, dey do everything, all at once," he add.
Third Quarter Results
For Q3, Nvidia see earnings per share (EPS) of $1.30 on revenue of $57.01 billion. Analysts dey anticipate EPS of $1.26 on revenue of $55.2 billion, according to Bloomberg consensus data. De company see EPS and revenue of $0.81 and $35.1 billion, respectively, for de same period last year. Dat be ein big jump!
Data Center and Gaming Revenue
De AI giant ein data center business bring in $51.2 billion versus estimates of $49.3 billion. Nvidia ein gaming revenue be $4.3 billion, just short of de $4.4 billion estimate.
Blackwell Ultra and China Revenue
"Blackwell Ultra dey now our leading architecture across all customer categories while our prior Blackwell architecture see continued strong demand," CFO Colette Kress talk for ein statement. Revenue from ein China-specific H20 chip be "insignificant," she add.
Even though Nvidia dey do well, de stock dey waver. Wetin be de reason? Market volatility, profit-taking, or something else entirely? Only time go tell.