If we were Nvidia’s CEO, we’d probably be staring in the mirror screaming, “What more do you want from me?!”
The AI-chip-designing company announced its second quarter earnings last week. It reported $46.7 billion in revenue, edging out analyst expectations of $46 billion. That’s a 56% increase from $30 billion a year ago, making it the ninth straight quarter Nvidia had a more than 50% increase in YoY earnings.
Even so, Wall Street gave a collective shrug and considered the numbers underwhelming. Shares dropped 4% in post-trading hours on after the release.
According to Business Insider, Goldman Sachs analysts are looking for three key things that will influence Nvidia’s stock price for the rest of the year: continued spending on AI by the Magnificent 7, updates on the Rubin chip, and whether the company can circumvent the ban on exports to China.
Strong chip sales to major tech firms signaled Nvidia is still riding the AI wave, mitigating bubble concerns. It has distributed about 72,000 Blackwell chips per week since they were released late last year. With an estimated price of $30,000 each, that’s a good chunk of change for the company. But data center revenue was disappointing, coming up short for the second quarter in a row.
The elephant in the room was China. In Q2, Nvidia didn’t sell any chips to the country because of a ban on exports, and ongoing negotiations between Washington and Beijing.. . Nvidia’s $54 billion Q3 forecast excludes China, but if sales resume, that “would lift its revenue higher,” the NYT reported.
If President Donald Trump and Chinese President Xi Jinping work things out, Nvidia stands to profit. China offers a $50 billion annual revenue opportunity for the company, according to Business Insider.
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