Nvidia shares down 4.6% in premarket trade despite market-beating earnings

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Nvidia shares fell 4.5% in U.S. premarket trade on Thursday despite its fiscal second-quarter results beating estimates.

Nvidia shares fell 4.6% in U.S. premarket trade on Thursday despite its fiscal second-quarter results beating estimates. But expectations for the chipmaker remain very lofty.

The pullback in the stock on Thursday also comes after a meteoric rally. This year, Nvidia's shares have risen more than 150%.It was the fourth-straight quarter of triple-digit revenue growth. But as Nvidia continues its rapid expansion, the annual comparisons are getting tougher. Meanwhile, the company said that gross margins would be in the"mid-70% range" for the full year. Analysts were expecting a full-year margin of 76.4%, according to StreetAccount.that Nvidia would have had to beat all expectations by a long way, in order to see a pop in the stock after the numbers.The pullback in the stock on Thursday also comes after a meteoric rally, with Nvidia's shares rising more than 150% this year to date.

 

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