Technology

Nvidia has lost some of its shine recently, and shares were falling again early Wednesday. But earnings from Oracle may prove to be a good sign for the chip maker. The stock slipped 0.6% to $107.43 in Wednesday’s premarket as investors waited for the latest batch of U.S. inflation data. The overall market was also retreating — futures for the benchmark S&P 500 index were down 0.3%. The Big Tech stock has racked up triple-digit gains in 2024 but is down 14% over the past three months on worries that an economic slowdown will stop AI demand from rising at such a breakneck speed, with underwhelming sales guidance issued at the end of last month adding fuel to the fire. Big-name asset managers like Fidelity and T. Rowe Price have been trimming their stakes in Nvidia, while CEO Jensen Huang has also sold some shares. Nevertheless, a strong set of

On Wednesday, Nvidia Corporation (NASDAQ:NVDA) issued a better-than-expected fiscal second quarter report. However, its shares fell after the report, but still remain about 150% up for the year as Nvidia continues to serve big companies like Microsoft (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN) Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Meta Platforms (NASDAQ:META) and Tesla Inc (NASDAQ:TSLA). Second Quarter Highlights For the quarter ended in July, Nvidia reported its revenue surged 122% on a YoY basis as it topped $30 billion. After three straight quarters of YoY growth surpassing 200%, revenue of $30.04 billion still surpassed LSEG’s estimate of $28.7 billion. Net income more than doubled to $16.6 billion, or 67 cents per share while adjusted earnings per share of 68 cents surpassed LSEG’s estimate of 64 cents. The gross margin did slip to 75.1% from the first quarter’s 78.4%, but it is up compared to last year’s comparable quarter when it amounted to 70.1%. Data center

Nvidia Corp. (NASDAQ:NVDA) outperformed expectations, with impressive second-quarter earnings that beat forecasts. The AI computing giant credited its soaring revenue to robust data center performance, although its gross margin showed a slight contraction from the previous quarter. Nvidia also issued an above-consensus revenue forecast for the third quarter and announced a massive $50-billion stock repurchase authorization. Despite these strong results, Nvidia’s shares fell 3.6% in after-hours trading. Here’s how top Wall Street analysts are reacting to Nvidia’s latest performance: Read Also: Nvidia Slumps Nearly 5% In Premarket, Dragging Down Super Micro, Micron And Other Peers: What’s Going On? JPMorgan: Analyst Harlan Sur rates Nvidia stock as Overweight with a price target of $155, up from $115. “We expect solid demand in PC gaming to be a strong revenue driver for the company,” Sur wrote. He remains positive about Nvidia’s growth prospects in data centers and automotive segments, expecting continued strength

Nvidia’s (NVDA) purchase commitments and supply obligations showed significant growth for the first time in several quarters during fiscal Q2, UBS said in a note Thursday. Analysts, including Timothy Arcuri, said one of the key positive takeaways is the roughly $10 billion increase in the company’s total supply. This includes $6.7 billion in inventory and $27.8 billion in purchase commitments. This represents a 40% increase from the previous quarter, reversing a trend of slower growth. Compared to Nvidia’s revenue guidance, the ratio of supply to revenue has increased significantly. This ratio has historically been a good predictor of future revenue growth. “Nvidia traded down in immediate post-market trading related in part to somewhat frothy expectations around where guidance would land and what we long considered be unrealistic expectations the company had set three months ago around the timing for Blackwell volume shipments and how much revenue it would see this

Nvidia continues to deliver strong growth, and while this looks set to continue there remains little margin for error, Quilter Cheviot analyst Ben Barringer writes in a note. “Nvidia has grown to a point where there is little room for error and any sign of slowing or normalization of growth will have an outsized effect on the share price,” Barringer says. However, demand for AI remains strong, with the company noting its potential for growth in every sector, he adds, adding that Nvidia remains well placed for future growth. Shares closed down 2.1% on Wednesday at $125.61.