Nvidia’s business is growing faster than expected. Investors were still disappointed.

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Nvidia Nouvelles

Wall Street Analysts,Jensen Huang

Nvidia had a blowout Q2, but that wasn't enough to satisfy Wall Street.

year over year to $30 billion, up from $13.5 billion. Nvidia’s all-important data center revenue topped out at $26.3 billion, a 154% year-over-year increase.

As Nvidia’s business has boomed over the last two years, the company’s revenue topped Wall Street forecasts by double-digit percentage points for three straight quarters, including a 22% difference in its fiscal second quarter of 2024. Huang also said that AI inferencing is driving the company’s data center revenue. Inferencing refers to computers running AI programs and providing users with answers to their queries.That should put to rest fears of threats to Nvidia’s long-term growth as companies pivot from training AI models to using inference. Huang appears to believe that Nvidia will continue to plow forward as customers use its chips to both train and run their AI models.) catch up to its hardware and software lead.

Morgan Stanley's Joseph Moore, who raised his price target from Nvidia from $144 to $150, called out Nvidia's sky-high expectations with regards to the company's stock moves after the earnings report.

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