AI giant Nvidia delivers strong earnings but fails to satisfy growth-hungry investors

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Artificial Intelligence,Future Tech,Nvidia

Investors had lofty expectations from the chipmaker, following a more than seven-fold surge in Nvidia’s shares over the last two years.

posted strong quarterly results after Wednesday’s closing bell but forecast a third-quarter gross margin that could miss market estimates — putting a damper on investors who have driven a dizzying rally in the AI chip giant.

It posted revenues for the three months ended in July of $30 billion, up 15% from the previous quarter and up 122% from a year ago. Current and former employees at Nvidia, quoted by the Bloomberg news agency, described the “pressure cooker” demands of seven-day work weeks, long office hours with regular 2 a.m. finishes and frequent shouting matches and fights at meetings.

Huang, whose net worth is estimated to be $111 billion by the Bloomberg Billionaires Index, claims he is reluctant to fire employees, opting instead to “torture them into greatness.”“When you fire somebody, you’re saying, a lot of people say: ‘it wasn’t your fault’, or ‘I made the wrong choice’, or ‘there are very few jobs’,” Huang said during an interview in June when asked why he doesn’t fire people.

 

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Stocks are little changed as Dow hovers near record highs: Live updatesInvestors were awaiting Nvidia's earnings, due out after Wednesday's closing bell.
Source: CNBC - 🏆 12. / 72 Read more »