Nvidia: 3 reasons why Q2 beat did not impress investors

Published: Aug 28, 2024 Duration: 00:03:05 Category: News & Politics

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our top story today Nvidia reported its sixth consecutive earnings beat after the closing bell on Wednesday and that's thanks to ongoing demand for its AI chips shares however are Fallen as Alicia Keys would say down by about 3% after the chip maker said it expects third quarter Revenue to come in around 32.5 billion dollar more on why this is a key concern for investors and broader markets we've got our very own Tech editor here at yahooo Finance Dan Hy hey Dan yeah there were uh three things that investors really didn't seem to like from the earnings the first was the street seemingly wanted a bigger beat and sometimes your best just isn't enough right and so that's seemingly what we saw from Nvidia here they beat on expectations they beat uh on guidance and still we saw shares drop as much as 6% at one point uh immediately after the earnings announcement now they're down uh just around uh 3% a little more uh than that and you know I think it comes down to the fact that they just weren't the exciting Stellar blowa away kind of results that we had seen the prior quarters and ahead of the earnings I had kind of spoken about how investors may see a beat of 100% and not be as ecstatic uh if you look at the data center Revenue uh growth from the prior quarters we'd seen 400% plus growth it's tough to go from 400 to to to 200 or so or 100 or so and then still feel excited they're still growing though the other thing uh that I think uh Wall Street is looking at is the Blackwell delays and so the information reported there were delays now they uh said uh CEO Colette cred said that they made some changes to the mask of the the chip itself uh Jen Wong said look it's it's out there it's sampling uh it's working uh we're going to get it out there uh here's here's what he had to say we executed a change to the Blackwell GPU Mass to improve production yields Blackwell production ramp is scheduled to begin in the fourth quarter and continue into fiscal year 26 in Q4 we expect to dip several billion dollars in Blackwell Revenue so that's collect cressa CFO uh several billion dollars in Revenue but that brings us to the third thing there wasn't a lot of clarity uh analysts on the phone uh had asked what that means exactly how many B ions of dollars can they expect what's what's going on there uh and there was no real answer from Crest or Wong and so uh I think some people were were expecting you know give us a number give us an idea as to what the excitement uh around the chip is but that was a no-go so far so they say that they'll have it uh in Q4 uh those billions in Revenue I think now it's just a matter of waiting to see what that finally looks like when they do put that number out and that lack of clarity likely contri contributing to the Shar declines today Nvidia shares down about 3% thank you so much Dan for the breakdown

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