Nvidia Share Price Drops Following Q2 Earnings Reveal

Nvidia Share Price and Earnings Overview

Nvidia reported its second quarter earnings mostly ahead of estimates, but the chipmaker's guidance for the next quarter failed to impress Wall Street investors. The company announced its Q2 results after the bell. Nvidia share price ended 2.1% lower at $125.61 apiece at the closing bell. However, Nvidia stock price declined 6.89% in after-hours trading.

Key Financial Results and Future Expectations

Its total market value as of the close Wednesday was at $3.156 trillion, compared to around $1.15 trillion one year ago. The Nvidia share price has jumped 154% so far in 2024 and is up around 3,000% since 2019.

Nvidia's Q2 revenue more than doubled from the same period last year, rising 122% to $30.04 billion, beating estimates of $28.70 billion. Revenue from the data center business grew 154% YoY to $26.3 billion, accounting for 88% of overall sales.

• Nvidia forecasts revenue of $32.5 billion, compared to analysts' expectations of $31.77 billion.
• Its earnings per share, excluding certain items, was $0.68, slightly above estimates of $0.64.
• The gross margin was reported at 75.7%, down from 78.4% in the previous quarter.

The company also announced a $50 billion share buyback, aiming to bolster Nvidia shares and investor confidence moving forward.