Nvidia stock slips even after earnings top estimates and demand for AI chips surges

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Nvidia reported a quarterly profit that exceeded Wall Street estimates, but investors seemed less than impressed.

Nvidia may have exceeded Wall Street estimates as its profit jumped — buffeted by the chipmaking dominance that has cemented Nvidia’s place as the poster child of the artificial intelligence boom — but investors seemed less than impressed. The company on Wednesday reported net income for the April-June quarter of $16.6 billion. Adjusted for one-time items, net income was $16.95 billion. Revenue rose to $30 billion, up 122% from the same period a year ago and 15% from the previous quarter.

” Demand for generative AI products that can compose documents, make images and serve as personal assistants has fueled sales of Nvidia’s specialized chips over the last year. In June, Nvidia briefly rose to become the most valuable company in the S&P 500. The company is now worth over $3 trillion.

 

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