Nvidia stock down after earnings.
After a spike immediately after hours, Nvidia stock is down premarket. While the graphics-chip maker annihilated analyst’s expectations, NVDA spooked investors concerning their revenue from chips tied to crypto currency market sales.
Let’s look at the good in the earnings report. The Santa Clara, Calif.-based company earned $1.98 a share. Wall Street aficionados were expecting $1.47. Now that is a huge beat. Also, NVDA sales were up by 66% year-over-year with $3.21 billion This also beat expectations of $2.91 billion.
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Nvidia CEO Jensen Huang said: “We had a strong quarter with growth across every platform. Our data-center business achieved another record and gaming remained strong.” This is why the after hours trading NVDA was good.
At the end of the day, most people were intrigued in finding out about NVDA’s crypto numbers.
Nvidia sold $289 million in chips to crypto currency miners in the first quarter. These were strong numbers. But, despite their strong start, NVDA stated that crypto currency-related revenue might shrink in the current fiscal quarter. After those news, Nvidia stock dropped.
Mr. Huang stated: “Crypto miners bought a lot of our GPUs during the quarter, and it drove prices up. And so we’re starting to see prices come down. We monitor spot pricing every single day around the world. And the prices are starting to normalize.”
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