Nvidia just crushed earnings again. Numbers? Big. Revenue hit $46.7 billion, up 56% from last year. Profits blew past Wall Street guesses. EPS came in at $1.05, beating the $1.01 call.
So, why’s the stock down? Strange, right? But there’s a story here.
The Data Center Surprise
Everyone watches Nvidia’s data center business. It’s the AI engine. The goldmine. This quarter, it pulled in $41.1 billion. Huge. But… analysts wanted a touch more. Just a few hundred million higher. That tiny miss? Enough to spook investors. Crazy how the market works.
China – The Big Missing Piece
Here’s the twist. Nvidia finally got the U.S. green light to sell its H20 chip to China. Great news. Except zero sales showed up in the numbers. None. Investors saw that and frowned. China is supposed to be a big growth driver. Not seeing it yet makes Wall Street nervous.
The Forecast. Bold Yet Careful
For Q3, Nvidia expects $54 billion in revenue. Sounds great. Higher than analysts thought. But here’s the catch: that forecast doesn’t include China. They played it safe. Investors don’t like “safe.” They want bold. They want fireworks. Nvidia gave caution.
The Bigger Fear: The “AI Bubble”
You’ve heard it. Whispers of an AI bubble. Stocks pumped too fast. What if it all cools off? What if demand slows? Even with Nvidia’s monster numbers, the fear sits in the background. And fear? It moves markets faster than facts.
But Wait. The Fundamentals Are Still Strong
Step back for a second. Nvidia’s margins? Over 73%. Demand? Still red-hot from giants like Microsoft, Google, Amazon. The new Blackwell chips are rolling out soon. In the long game, Nvidia looks solid. Investors just… expect perfection every time.
Quick Recap
Revenue: $46.7B, beat
Earnings: $1.05/share, beat
Data Center: $41.1B, strong but shy of forecasts
China H20: Zero sales (yet)
Q3 Outlook: $54B, above estimates but cautious
Investor Mood: Jumpy, fearing slowdown
Nvidia crushed it. But Wall Street wanted moremore China, more boldness, more “wow.” Didn’t get it. So the stock dipped.
Still, the story isn’t over. Nvidia remains the king of AI chips. The engine of the AI boom. And even if the market throws a tantrum, the company’s future? Still shining bright.