In This Story
Nvidia’s NVDA+3.20% second-quarter results did not disappoint expectations — but it seems investors are still not impressed.
The chipmaker’s stock was down around 3.9% in pre-market trading on Thursday after it released earnings for the second quarter of fiscal year 2025. Ahead of its earnings report, Nvidia’s NVDA+3.20% shares were down around 2% at the market close on Wednesday. The company’s shares fell further down almost 7% in after-hours trading after the release. However, Nvidia’s shares are up 160.7% so far this year.
In another record-setting quarter, Nvidia reported second-quarter revenue of $30 billion for fiscal 2025 — up 122% from a year ago. The chipmaker’s revenue for the quarter ending in July was up 15% from the previous quarter’s revenue of $26 billion, which also surpassed expectations, and was up 262% year-over-year.
“Hopper demand remains strong, and the anticipation for Blackwell is incredible,” Jensen Huang, founder and chief executive of Nvidia, said in a statement. “Nvidia achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI.”
Nvidia was expected to report revenue of $28.7 billion for the second quarter — more than double its revenue of $13.5 billion a year ago, according to analysts’ estimates compiled by FactSet. The company was also expected to report earnings per share of $0.65, according to FactSet, but reported adjusted EPS of $0.68.
Despite the beat, investors seem to have been expecting a wider margin.
“While the numbers indicate that the AI revolution remains alive and well, the smaller beat compared to the previous quarters adds to the multiple warning signs across the tech space earlier in this earnings season,” Thomas Monteiro, senior analyst at Investing.com said in commentary shared with Quartz.
Meanwhile, the chipmaker set its third-quarter revenue guidance at $32.5 billion, plus or minus 2% — above the average of what analysts are expecting, but below top end estimates.