From Yahoo Finance: 2025-06-01 08:30:00

Decoding a public company’s earnings report within 24 hours can be baffling. A company that beats estimates may see its stock plunge due to a single misstep, like Gap’s 20% drop after warning about tariffs. Conversely, missing estimates could lead to stock price surges if bad news was already factored in.

Nvidia reported adjusted earnings per share of $0.81, missing estimates of $0.93. Excluding a “H20 charge,” the adjusted EPS was $0.96. Analysts remain bullish, excluding the impact of China’s chip export control. CEO Jensen Huang emphasized strong demand for AI chips and expected profit margin recovery.

Despite Nvidia’s positive outlook, the earnings fell short of consensus, with uncertainty surrounding the impact of its China business loss. Analysts’ estimates varied on including the H20 charge, adding pressure on other areas to compensate. Questions arise about the potential impact of robotics compared to the lost China business.

Executive Editor Brian Sozzi challenges the consensus view on Nvidia, urging readers to question stock assessments. While acknowledging Nvidia’s strengths, he emphasizes the importance of critical analysis in evaluating companies. Email [email protected] for story tips or follow him on social media for the latest updates on technology news and stock market impacts.

Read more: What Wall Street might be missing on Nvidia