Nvidia Beats Expectations But Shares Take A Hit

AFP/APP

San Francisco: Nvidia, the AI chip giant, reported quarterly sales of $30 billion, surpassing expectations but slowing down compared to previous quarters. Despite doubling its profit to $16.5 billion, the company’s stock fell by around 3% in after-hours trading.

This decline reflects investor concerns that Nvidia’s rapid growth, driven by the AI boom, might be normalizing. Tech giants like Microsoft, Google, Meta, Tesla, and Amazon heavily rely on Nvidia’s AI technology, but the future profitability of generative AI remains uncertain.

Nvidia’s stock, which has surged 160% year-to-date, plays a significant role in the S&P 500’s performance. However, investor sentiment is fluctuating as the company’s growth trajectory comes under scrutiny.