Nvidia’s strong second-quarter earnings, which exceeded analysts’ expectations, failed to impress investors, leading to a decline in the company’s stock price after hours on Wednesday. The semiconductor sector, which has benefited from the AI boom, followed suit, with several key players experiencing significant after-hours drops. Here’s a breakdown of some of the biggest movers in the chip space:
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Advanced Micro Devices Inc (AMD):
Closed down 2.75% at $146.36*
Micron Technology Inc (MU):
Closed down 3.07% at $94.86*
Super Micro Computer Inc (SMCI):
Closed down 19.02% at $443.49*
Taiwan Semiconductor Manufacturing Company Ltd (TSM):
Closed down 0.79% at $169.20*
Intel Corp (INTC):
Closed down 2.29% at $19.61*
Marvell Technology Inc (MRVL):
Closed down 1.82% at $68.44Nvidia reported second-quarter revenue of $30.04 billion, surpassing the consensus estimate of $28.684 billion. The leading AI chipmaker also reported adjusted earnings of 68 cents per share, beating analyst estimates of 64 cents per share. “Hopper demand remains strong, and the anticipation for Blackwell is incredible. NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI,” said Jensen Huang, founder and CEO of Nvidia.
Despite the strong earnings, Nvidia’s shares slipped by 5.56% after hours, trading at $118.62. The company’s projected third-quarter revenue of $32.5 billion, plus or minus 2%, also fell short of analyst expectations of $31.77 billion. This suggests that investors may be concerned about the sustainability of Nvidia’s growth trajectory, despite the company’s strong position in the AI market.
The market’s reaction to Nvidia’s earnings report raises concerns about the broader semiconductor sector. Several other players in the space have benefited from the AI boom and often trade in sympathy with Nvidia. The upcoming conference call with Nvidia, scheduled for 5 p.m. E.T., could provide further insight into the market’s concerns and potentially spark more volatility across the sector.
It’s important to note that not all chip companies have reported their results yet. Marvell Technology is set to release its earnings after the market close on Thursday, while Micron has scheduled its quarterly results for next month. Investors will be closely watching these reports to gauge the overall health of the semiconductor sector and its future prospects in the face of the ongoing AI boom.
