Nvidia once again has a blowout financial quarter but its share price is currently down

For the past few years, thanks largely to the AI revolution, Nvidia has seen a surge in its graphics chips business. Its CPUs have been used in tons of AI data centers, and as a result, its financial results have been blowing out expectations and projections for several quarters.

Today, Nvidia revealed the financial results for the second fiscal quarter of 2024, which ended on July 28. The company recorded revenues of $30 billion, up 11 percent from the last quarter and up 122 percent from the same quarter a year ago.

Nvidia also recorded net income of $16.6 billion for the quarter, which was up 12 percent from the last quarter, and up by 168 percent from the same period a year ago. The company also announced a $50 billion share buyback program which usually helps its stock price.

All of these results beat Nvidia's projections as well as the expectations of financial analysts. However, Reuters reports that some of those investors were not as impressed by the amount that the company beat expectations:

"Here's the issue, the size of the beat this time was much smaller than we've been seeing," said Ryan Detrick, chief market strategist at the Carson Group.

 

"Even future guidance was raised, but again not by the tune from previous quarters. This is a great company that is still growing revenue at 122%, but it appears the bar was just set a tad too high this earnings season."

As a result, shares in Nvidia were down by over 6 percent as of this writing. The share price went way up in 2024 but went down a bit during the summer before recovering somewhat.

For the current third fiscal quarter of 2024, Nvidia says it expects revenues of $32.5 billion, plus or minus 2 percent. It also mentioned the future release of its next-gen "Blackwell" AI GPU. CEO Jensen Huang stated, "Blackwell samples are shipping to our partners and customers."

There were previous rumors that mass production of the Blackwell GPU could be delayed to the first quarter of 2025, due to the discovery of a design flaw in the chip. The company gave no indication of such a flaw, or a shipment delay, in its financials today.

Source

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