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Despite delivering another record quarter, Nvidia (NVDA+1.66%) fell out of the $3 trillion market cap club after some unimpressed investors were left wanting more.
Nvidia’s stock was up by around 1.4% during morning trading on Friday at around $121 per share, leaving the firm with a roughly $2.9 trillion market cap.
Still, the chipmaker’s shares fell in early trading on Thursday after it reported fiscal fourth-quarter earnings results. Advanced Micro Devices (AMD+0.16%), Intel (INTC+2.40%), and other chip rivals also saw declining shares.
“What seems to be driving the share reaction is that it’s yet another typical Nvidia report where they beat and raise expectations,” Ken Mahoney, CEO of Mahoney Asset Management, said in post-earnings comments shared with Quartz. “For them to have this track record of doing that every time, in some way almost works against them as the market is not impressed unless it is a blowout beat and raise.”
The company reported revenue of $39.3 billion for its fiscal fourth quarter — a 78% increase from the previous year, and above the consensus of $38.1 billion. Its full-year revenue more than doubled year over year to $130.5 billion.
Revenue guidance for the first quarter of the current fiscal year was set at $43 billion, plus or minus 2% — also above Wall Street’s expectations of $42 billion.
Ahead of earnings results, analysts were optimistic that the chipmaker would beat expectations and raise its outlook as it ramps up Blackwell production — despite shockwaves from Chinese AI startup DeepSeek.
“We’ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter,” Nvidia CEO Jensen Huang said in a statement. He called demand for the new chips “amazing” as companies roll out reasoning AI models.