Nvidia beats earnings expectations but shares fall due to lower gross margin outlook

From CNBC: 2024-08-29 05:47:42

Nvidia shares fell in U.S. premarket trade after its second-quarter gross margin dropped slightly. Revenue beat expectations at $30 billion, up 122% YoY for the fourth consecutive quarter of triple-digit growth. However, outlook for the fiscal third quarter suggests an 80% YoY increase but a slowdown from the previous quarter. Gross margins projected at mid-70% range for the full year, disappointing some analysts. The stock has soared more than 150% YTD and more than 750% since the start of 2023, benefiting from the AI boom. The decline in Nvidia shares also impacted other semiconductor firms globally, such as Samsung and Taiwan Semiconductor Manufacturing Company. Nvidia addressed concerns of delays to its next-generation Blackwell AI chip and announced a $50 billion stock buyback program.



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