AI powerhouse Nvidia reported quarterly earnings Wednesday that beat expectations, but shares slipped amid concerns about an AI chip spending bubble and the company's stalled business in China.
Nvidia shares slump in after-hours trade as slowing revenue growth causes it to miss quarterly expectations in its data centre business. German defence company Rheinmettal unveils what will be Europe's largest munitions plant.
Daniel Heyler, senior analyst at EFM Asset Management, says that since China will be the biggest beneficiary of AI economically, investors should not only think about having positions in the individual chipmakers, but broaden it out to companies that would benefit from utilizing the technology.
Nvidia's Q2 2025 revenue and earnings beat estimates, but shares fell post-earnings. Data center revenue missed forecasts, and H20 chip shipments to China remain uncertain.
Nvidia Corporation delivered record revenues and EPS, beating consensus, despite zero China sales and a slight Data Center revenue miss. Guidance remains robust, with Q3 revenue set above consensus and margins expanding, even as growth normalizes and China remains excluded. Nvidia's unmatched AI ecosystem, market share, and Blackwell ramp-up underpin its dominant position and justify premium valuation multiples.
Nvidia's stock sank as much as 5% after the bell on Wednesday as giant chipmaker's middling financial outlook raised fears about a slowdown in the red-hot artificial intelligence sector.
Nvidia forecast third-quarter revenue above Wall Street estimates on Wednesday, helped by robust demand for its artificial intelligence chips from cloud providers expanding infrastructure to power generative AI technology.
The chipmaker, now the most valuable public company in the world, said strong demand for its chips should continue this quarter.
Nvidia forecast third-quarter revenue above Wall Street estimates on Wednesday, helped by robust demand for its artificial intelligence chips from cloud providers expanding infrastructure to power generative AI technology.
Stacy Rasgon, Bernstein semiconductor analyst, joins 'Power Lunch' to discuss Nvidia's quarterly earnings results, how much institutional interest still exists with Nvidia and much more.
Nvidia Corp (NASDAQ:NVDA, ETR:NVD) shares may face near-term headwinds even as Goldman Sachs remains optimistic about the company's long-term growth. The firm's analysts said they remain “very bullish on Nvidia's prospects for driving outsized growth in 2026,” but warned the stock could struggle in the coming months.
Nvidia, the world's most valuable company, has seen its growth explode along with demand for artificial intelligence chips. Funds that hold the stock could see big moves.