Nvidia reported mixed second quarter earnings on Wednesday, meeting some market expectations but missing others.
The company posted revenue of $46.74 billion, up 56% from a year ago. The number is higher than the $45 billion Nvidia shared in earnings guidance last quarter, and is just barely above the projected market consensus of $46.23 billion, according to Bloomberg.
Adjusted earnings per share came in at $1.05, above the average market estimate of $1.01.
Roughly $41.1 billion of that revenue was from the company’s data centers business, which was up 56% from a year ago, but missed the market consensus expectation of $41.29 billion.
Shares dipped 4% initially on that data centers miss, but have since pared back those gains to around 2%.
Nvidia also announced that it has approved an additional $60 billion for a share buyback, a move that usually lulls investors but has not stopped share price wobbles in post-market trading.
Ahead of the report
The S&P 500 surged ahead of earnings results to hit a record high of 6,481.40 Wednesday just ahead of quarterly earnings from the world’s largest company, chipmaker Nvidia.
“Nvidia is going to produce humongous revenue gains over the next nine months, on top of an already humongous revenue base,” said Jed Ellerbroek, portfolio manager at Argent Capital, told Reuters. “Investors should prepare themselves for a world where Nvidia is a double-digit percentage of the S&P 500.”
Why do Nvidia’s earnings move the market so much?
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