Nvidia posted solid second-quarter results, but they weren’t enough to convince investors, analysts said in response to results released after hours on Wednesday.
The results were robust, but showed challenges with the increased complexity of Nvidia’s latest products, the analysts said. The pace of growth slowed in the quarter.
“Apparently the better-than-expected numbers weren’t enough to convince the market,” said analyst Stephen Todd of Todd Market Forecast. “But the impact doesn’t seem to be huge.”
At JPMorgan, analysts spoke of “a strong performance, which was better than expected”. According to the investment bank, this was due to continued demand for Nvidia products. Growth in data centers will continue in 2025, JPMorgan expects. “In addition, demand for Blackwell chips remains very strong.” JPMorgan believes that demand will continue to exceed supply for some time.
Ortus Advisors expects Nvidia’s results today to weigh on the global semiconductor sector. According to analyst Andrew Jackson, Nvidia’s outlook failed to live up to sky-high expectations.
For the third quarter, Nvidia expects revenue of $32.5 billion, plus or minus 2 percent, and an adjusted gross margin of 75.0 percent, up to 50 basis points.
However, according to analysts, the broad market is able to absorb this price pressure.
Nvidia stock was down nearly 7 percent in premarket electronic trading on Thursday. The options exchange had already anticipated a 9 percent move in the stock after the figures.
