- Bayern hit nine, Real Madrid and Liverpool win as new Champions League kicks off
- Author John Grisham joins bid to save Texas death row inmate
- Venezuela arrests fourth American over alleged 'plot' against Maduro
- 'Happy' Mbappe strikes on Madrid Champions League debut win over Stuttgart
- Man Utd hit Barnsley for seven in League Cup rout
- Dolphins quarterback Tagovailoa facing concussion layoff
- Stylish Liverpool strut past Milan in confident Champions league opener
- Kane scores four as Bayern put nine past Zagreb in the Champions League
- Mbappe strikes on Madrid Champions League debut win over Stuttgart
- More than 3,600 food packaging chemicals found in human bodies
- Harris calls Trump as assassination scare sparks tensions
- Dow edges down from record as some eye a smaller Fed rate cut
- Sommer vows Inter will 'defend with all we have' to stop Haaland
- Report links meatpacking companies to 'war on nature' in Brazil
- Bolivian ex-leader Morales, backers set out on weeklong protest march
- Smith grateful to McCullum for launching his England career
- Arizona to ask court to rule on voting rights
- Villa make perfect start on Champions League return after 41-year absence
- Israeli supply chain infiltration likely behind Hezbollah pager blasts: analysts
- Rodgers backs Celtic to be 'really competitive' in Champions League
- Spacewalk an 'emotional experience' for private astronauts
- Storm Boris toll rises to 22 in central Europe
- Nine dead, 2,800 wounded as Lebanon's Hezbollah hit by pager blasts
- Boeing, union resume talks as strike empties Seattle plants
- Over 3,600 food packaging chemicals found in human bodies
- Australia's Zampa accepts Ashes chances remote as 100th ODI looms
- UN General Assembly debates call for end to Israeli occupation
- Marseille complete signing of French international Rabiot
- Easterby to fill in as Ireland coach while Farrell is with the Lions
- Hezbollah in Lebanon hit by wave of deadly pager blasts
- Postecoglou taken aback by criticism of his second season success claim
- US, European stocks rise on retail sales, rate cut expectations
- Fendi sees Roaring 20s at Milan Fashion Week in challenging times
- Ronaldo's Al Nassr part ways with coach Castro
- Scottish government backs Glasgow to stage troubled 2026 Commonwealth Games
- Storm Boris toll rises to 21 in central Europe
- Instagram, under pressure, tightens protection for teens
- Inflation slows again in Canada to 2%
- US, European stocks rise on eve of Fed rate decision
- EU bans Algerian spread toasted on social media
- Sean 'Diddy' Combs charged with racketeering, sex trafficking
- Trump returns to campaign trail after assassination scare
- Activist urges repatriation of Native Americans dead in Paris 'human zoo'
- US retail sales see slight rise, beating expectations
- US Fed begins two-day meeting set to end with rate cut
- Exploding Hezbollah pagers wound hundreds across Lebanon
- Runners-up Yokohama thrashed 7-3 in AFC Champions League goal fest
- Sean 'Diddy' Combs to plead not guilty to racketeering, sex trafficking
- Jihadist group claims rare attack on Mali capital
- 'I am a rapist,' Frenchman tells trial over mass rape of wife
AI chip giant Nvidia beats expectations, but shares take hit
Artificial intelligence behemoth Nvidia on Wednesday said quarterly sales reached a higher than expected $30 billion in the last quarter, though that growth was slower than the furious pace seen in previous quarters.
Declared by Wall Street to be the world's most important stock, the California-based AI chip-maker led by CEO Jensen Huang saw its share price fall by about four percent in after hours trading.
Even though sales and profit, which hit $16.5 billion in the period, more than doubled from a year earlier, investors showed nervousness that Nvidia's extraordinary growth, spurred by the AI frenzy, may be showing signs of normalization.
The world's biggest tech companies have invested tens of billions of dollars, quarter after quarter, into Nvidia's powerful AI chips and software in order to get their ChatGPT-style AI models up and running.
Microsoft, Google, Meta, Tesla and Amazon all depend on Nvidia technology to train generative AI models and execute the heavy computing workloads needed to deploy the new technology.
Ahead of the latest earnings, Nvidia's share price was up about 160 percent year-to-date and has accounted for a third of the broad-based S&P 500 index's gains this year.
Nvidia stock wavered in July, as investor sentiment hesitated over whether generative AI will be a money making enterprise anytime soon.
But in recent weeks Nvidia's share price has been back on its historic tear, nearing the heights of a few months ago when the firm was very briefly the world's most valuable company when measured by stock valuation.
The market had expected the company to post sales at about $28 billion, more than double from a year ago.
"Nvidia once again delivered spectacular results, beating expectations with margins that rival its previous blockbuster quarters, despite growing economic uncertainties and AI bubble concerns," said Emarketer technology analyst Jacob Bourne.
Nvidia's financial postings have become must-see events on Wall Street after the company has repeatedly crushed expectations, many times tripling its revenue and profit.
- 'Disappointed a touch' -
But some analysts worried that Nvidia was slowly coming down to earth with its latest earnings, as stellar as they might be.
"It's less about just beating estimates now -- markets expect them to be shattered, and it's the scale of the beat today that looks to have disappointed a touch," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.
Traders also focused on Nvidia's forecast that next quarter's revenue will be about $32.5 billion.
Though this was better than the average of analyst predictions, it left some observers disappointed that the days of triple-digit growth were over.
Investors were also laser focused on any potential delays to Nvidia’s new generation Blackwell line of technology, the successor to the best-selling Hopper line of AI chips that thrust the company onto the world stage.
CEO Huang said the new product line would ship at scale to clients in the coming months, with its previous generation of AI chips expected to maintain very strong sales.
J.Williams--AMWN