On Wednesday, under the pressure of NVIDIA's financial report, the three major indices collectively fell, with the tech-heavy Nasdaq falling more than 1%.

(Three major index minute chart, source: TradingView)

At the close, the Dow Jones Industrial Average fell 0.39% to 41,091.42 points; the S&P 500 Index fell 0.60% to 5,592.18 points; and the Nasdaq Composite Index fell 1.12% to 17,556.03 points.

Since this week, the market has been closely watching NVIDIA's quarterly report, with investors focusing on the delivery schedule of NVIDIA's Blackwell chip and the latest situation of artificial intelligence (AI) demand.

Irene Tunkel, Chief U.S. Equity Strategist at BCA Research, said Wednesday's trading indicated that many nervous traders were eager to lock in profits on tech stocks like NVIDIA to be safe.

The financial report released after market close on Wednesday showed that NVIDIA's Q2 earnings and sales more than doubled compared to the same period last year, exceeding Wall Street's expectations.

After the financial report was released, Nvidia's stock price first rose and then fell after hours, falling by 8% at one point. As of the time of publication, Nvidia's stock price has fallen nearly 6% after hours.

The reason for Nvidia's significant decline after hours is that the company's revenue forecast is lower than the most optimistic market expectations, which has sparked concerns among investors about the weakening of its explosive growth.

Popular stocks performance

Large technology stocks fell collectively, with Apple down 0.68%, Nvidia down 2.10%, Microsoft down 0.78%, Tesla down 1.65%, Google down 1.11%, Amazon down 1.34%, Meta down 0.45%.

Popular China concept stocks fell across the board, with the Nasdaq Golden Dragon China Index down 3.57%, Alibaba down 2.25%, JD.com down 1.67%, PDD Holdings down 7.03%, NIO Inc down 7.50%, Xpeng down 9.00%, Li Auto Inc down 16.12%, Bilibili down 5.60%, Baidu down 2.90%, Netease down 3.78%, Tencent Music down 5.13%, iQiyi down 3.98%.

Company news

[Nvidia's second quarter revenue and third quarter revenue outlook both exceed expectations, approving an additional $50 billion share buyback]

Nvidia's second quarter revenue was $30 billion, exceeding analysts' expectations of $28.86 billion; second quarter datacenter revenue was $26.3 billion, exceeding analysts' expectations of $25.08 billion; third quarter revenue is expected to be $32.5 billion, with a fluctuation of 2%; analysts' expectations are $31.9 billion; second quarter gaming revenue was $2.9 billion, exceeding analysts' expectations of $2.79 billion; the second quarter adjusted gross margin was 75.7%, exceeding analysts' expectations of 75.5%; the second quarter adjusted EPS was $0.68, exceeding analysts' expectations of $0.64; maintaining a quarterly dividend of 1 cent per share; approving an additional $50 billion share buyback program.

NVIDIA expects Blackwell's fourth-quarter revenue to reach several billion dollars.

NVIDIA stated that Blackwell samples have been shipped to partners and customers. The mass production of Blackwell is scheduled to begin in the fourth quarter, and it is expected to generate revenue of several billion dollars in the fourth fiscal quarter. The market's expectations for Blackwell are incredible.

OpenAI is reportedly negotiating financing with a valuation of over 100 billion dollars. Microsoft is expected to continue investing.

According to sources, OpenAI is in talks for a new round of financing with a valuation exceeding 100 billion dollars. Microsoft is also expected to contribute funds.

OpenAI's CFO announced in a memorandum that negotiations for a new round of financing are still in the early stages. They are raising funds to be used for computing and operational business.

Berkshire Hathaway's market cap exceeded 1 trillion dollars for the first time. It reached over 1 trillion dollars on Wednesday, making it the seventh listed company in the US to have a market cap exceeding 1 trillion dollars.

Berkshire Hathaway, owned by the 'Oracle of Omaha' Warren Buffett, briefly surpassed a market cap of 1 trillion dollars on Wednesday, marking its first time crossing the 1 trillion-dollar threshold. It is the seventh publicly traded company in the US to achieve a market cap exceeding 1 trillion dollars.

Since the beginning of this year, Berkshire Hathaway's total market value has increased by nearly 230 billion dollars, surpassing the total market value of iconic companies in various industries such as American Express, McDonald's, Cisco Systems, and Wells Fargo & Co.

Berkshire Hathaway recently disclosed in its filings with the U.S. Securities and Exchange Commission that after reducing its holdings in Apple and Bank of America, the company significantly increased its holdings in U.S. Treasury short-term bonds. The company now holds even more bonds than the Federal Reserve.

At Wednesday's close, the market value of Berkshire Hathaway was $993.893 billion.

After being shorted by Muddy Waters, Super Micro Computer saw its stock price plummet nearly 20%.

On Wednesday, AI server manufacturer Super Micro Computer saw its stock price drop 19.02% at the close. The company had previously announced a delay in releasing its annual financial report. A day earlier, renowned short-seller Muddy Waters released a short report on the company, stating that its investigation revealed clear warning signals in regard to Super Micro Computer's accounting practices.

Disney and Reliance Industries have received approval for their $8.5 billion media merger, creating an entertainment giant in India.

Disney and Reliance Industries have obtained approval for their $8.5 billion merger of media assets in India, following successful mitigation of regulatory concerns regarding their control of the rights to broadcast Indian cricket. The Competition Commission of India (CCI) announced that it has approved the transaction, subject to certain modifications. Disney and Reliance Industries plan to complete the merger before October. Former merger chief of the Board of Control for Cricket in India (BCCI), KK Sharma, had previously warned that if the deal was approved, it could create a 'Behemoth' in the broadcasting market, effectively 'monopolizing cricket advertising revenue.' Nevertheless, the approval from the CCI marks a decisive step forward for this major merger.

Li Auto announced that it will launch a brand-new all-electric product in the first half of 2025.

During the Q2 2024 earnings conference call on the 28th, Li Auto Chairman Li Xiang announced that a brand-new all-electric product will be released in the first half of 2025. 'Li Auto will solve the design problem of all-electric products and provide users with over 2,000 supercharging stations upon delivery. We hope that within two years, Li Auto will enter the first echelon of high-end pure electric vehicles.'

According to Li Auto Inc President, Ma Donghui, the overall progress of pure electric product research and development is normal. Multiple small-scale test productions of prototype vehicles have been completed, and the construction of the entire vehicle production plant has been completed. The overall progress of industry chain capacity preparation can also meet the sales demand, and the core components are undergoing performance testing.