NVIDIA beats revenue estimates but stock drops 6.9% in after-hours trading

From Zacks Investment Research: 2024-08-29 09:06:26

NVIDIA (NVDA) reported Q2 fiscal 2025 results, beating revenue estimates at $30.04 billion, with a 122% YoY increase and 15% QoQ increase. Adjusted EPS was 68 cents, surpassing estimates of 64 cents. The data center segment saw strong growth, reaching $26.3 billion, up 154% YoY and 16% sequentially. Despite great results, NVDA stock dropped 6.9% in after-hours trading due to high investor expectations and concerns about growth sustainability. NVIDIA expects revenue growth rates to slow down in the future, impacting stock performance. NVDA also announced $50 billion in share buybacks to maximize shareholder value.

To counter slowing growth, investors can look into NVDA-heavy ETFs such as Strive U.S. Semiconductor ETF (SHOC) and VanEck Vectors Semiconductor ETF (SMH) among others.



Read more at Zacks Investment Research: What Awaits NVIDIA Stock & ETFs Post Earnings: Pain or Gain? – August 29, 2024