ALBAWABA - Despite over doubling the amount of its sales and reporting record revenues of $30 billion over a three-month period, Nvidia has seen its share price decline, regardless of the fact that the artificial intelligence (AI) chip giant has easily surpassed predictions.
As artificial intelligence continues to grow, Nvidia has benefited the most. Having surged about 240% in 2023, Nvidia's shares have gained over 150% so far this year, according to CNBC. It was the most valuable for a short period of time with its market capitalization rising beyond $3 trillion. Apple now holds the title of most valuable public business globally, followed by Nvidia.
As Nvidia reported on Wednesday that it had surpassed the forecasts of Wall Street by 4.1%, the company's shares saw a decline of 8% during extended trading. This was the lowest margin since the fourth quarter of the company's fiscal year 2023, as Yahoo reports.
When Nvidia confirmed rumors that its new Blackwell chip had hit some production snags, Wall Street reacted poorly.
Investors need a reality check, says @DaveLeeBBG. Here’s why 🎥 pic.twitter.com/3bTj2Lr6hR— Bloomberg Opinion (@opinion) August 29, 2024
At this stage in the artificial intelligence investment cycle, Wall Street looks to have a better understanding of Nvidia's progress. However, issues have also been raised over the current condition of Nvidia's next generation Blackwell chip.
The Information reported prior to the company's financial results release that the chip, which is the successor to Nvidia's Hopper series, was experiencing delays that might have an effect on some of the company's most important clients, such as Microsoft and Google.
Jensen Huang, founder and CEO of NVIDIA said in a press release that “Hopper demand remains strong, and the anticipation for Blackwell is incredible,” adding “NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI.”
