[Moo Brief] Nvidia slips despite earnings beat in Q2: Is AI bubble finally popping?
![[Moo Brief] Nvidia slips despite earnings beat in Q2: Is AI bubble finally popping?](https://ussnsimg.moomoo.com/sns_client_feed/73697621/20240829/1724915578571-d38e1f8335.webp/big?area=103&is_public=true)
Mooers, did $NVIDIA (NVDA.US)$ 's Q2 results strike your expectations? $NVIDIA (NVDA.US)$ announced record financial results for the second quarter of fiscal 2025, exceeding expectations for both revenue and earnings.![]()
According to the Q2 2024 fiscal report, $NVIDIA (NVDA.US)$ ’s revenue grew 122% YoY to $30 billion, exceeding market expectations of $28.857 billion, alongside earnings per share of $0.68, which surged 168% YoY. Net income climbed to $16.599 billion, representing a staggering 168% jump but gross margin fell below consenus of 75.5% to 75.1%. The strong financial performance is driven by soaring demand for its AI products and services as more industries adopt AI technologies.
![[Moo Brief] Nvidia slips despite earnings beat in Q2: Is AI bubble finally popping?](https://ussnsimg.moomoo.com/sns_client_feed/73697621/20240829/1724916839894-169c15fa6a.jpeg/big?area=103&is_public=true)
🌠By segment, $NVIDIA (NVDA.US)$ ’s data center revenue for the second quarter was $26.27 billion, a 154.5% YoY increase, surpassing the analyst forecast of $25.08 billion. Gaming revenue was $2.88 billion, up 15.8% from the previous year, exceeding the expected $2.79 billion. Professional visualization revenue reached $450 million, a 19.8% increase, in line with analysts' expectations. Automotive chip revenue totaled $346 million, up 36.8% year-over-year, slightly below the forecast of $348 million.
After the results announcement, $NVIDIA (NVDA.US)$ fell nearly 7% in after-hours trading on August 29. One possible explanation for the decline is that, despite the company's third-quarter revenue forecast exceeding analysts' consensus, it may have fallen short of increasingly lofty expectations in recent days.
$NVIDIA (NVDA.US)$ 's recent stock drop can be traced to several critical challenges facing the company.
What's behind the stock price decline?
✎Bar set 'too high'
The market views $NVIDIA (NVDA.US)$ 's second-quarter results as exceeding expectations, though the degree of outperformance is shrinking.
✎Blackwell Chip Delay
In addition, the mask production process of the next-generation product Blackwell GPU needs to be improved, confirming the previous rumor that the delivery time will be delayed, causing market concern. While existing products like the H200 and H20 AI chips may cushion the impact, questions about future revenue growth persist.
✎Increased Competition
The company also faces intensifying competition from tech giants such as Amazon and Google, who are increasingly developing their own chips to reduce dependency on $NVIDIA (NVDA.US)$. The company's primary rival, $Advanced Micro Devices (AMD.US)$, reported better-than-expected earnings last quarter. In a July 30 earnings call, $Advanced Micro Devices (AMD.US)$ CEO Lisa Su attributed strong performance to robust sales of its AI chip.
Will Blackwell GPU make an impact in Q4?
At Hot Chips 2024 this Tuesday, senior $NVIDIA (NVDA.US)$ engineers presented the latest advancements powering the $NVIDIA (NVDA.US)$ Blackwell architecture platform, plus research on liquid cooling for data centers and AI agents for chip design.
$NVIDIA (NVDA.US)$ Blackwell outperformed the $NVIDIA (NVDA.US)$ Hopper architecture by a staggering factor of four in the largest workload for a large language model in MLPerf – Llama 2 70B. In addition, the $NVIDIA (NVDA.US)$ H200 Tensor Core GPU performed exceptionally well in all data center tests, including the latest MLPerf benchmark for the Mixtral 8x7B Mixture of Experts language model with 46.7 billion parameters.
In its latest earnings call, $NVIDIA (NVDA.US)$ announced that the highly anticipated Blackwell GPU will begin mass production in the fourth quarter of this year, with expected revenues of billions. Notably, the Chinese market significantly contributed to the company’s data center revenue, and sovereign AI business is also growing, expected to add billions in 2024.
Although the market is concerned about the delay in Blackwell GPU shipments, the key point is that customers will continue to flock to $NVIDIA (NVDA.US)$ regardless of the delay. Production issues are expected to be resolved over time. As $NVIDIA (NVDA.US)$ 's guidance suggests, the Blackwell GPU is still anticipated to generate billions in revenue in the fourth quarter.
Do you think the Blackwell architecture platform can help $NVIDIA (NVDA.US)$ 's stock price rebound?![]()
Please drop your answer with reasonable comments, and you will receive 66 points. ![]()
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![[Moo Brief] Nvidia slips despite earnings beat in Q2: Is AI bubble finally popping?](https://ussnsimg.moomoo.com/sns_client_feed/73697621/20240829/1724914573606-7bbf30f433.png/big?area=103&is_public=true)
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103916021 :
mr_cashcow : Yes report are saying the Blackwell performance is so much better than its predecessor, Nvidia stock price also seems to be rebounding back by a bit already![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
102362254 : Yes. Nvidia's new Blackwell architecture platform is highly anticipated and could likely boost its stock, despite a reported delay. Nvidia's strong earnings and high demand for its AI chips show that the company is still moving in a positive direction. However, how quickly Blackwell will drive revenue growth is still a key question.
74413302 : yes
Meme_Short_Queen : he AI hype will end in bust spectacularly, Blackwell is nothing but distraction
Matt Infinity Afan : with the ever increasing demand for AI and Data Centers there is no doubt that the Blackwell GPU will hit the market with the might of a thundering hook. NVDA will solidify it's place as No1 for the time being.