Chipgigant Nvidia was the turn of yesterday to publish his quarterly figures. Although these were again very strong, they did not provide the usual “wow effect”. As a result, Nvidia in the after -fair fell down by 3.14 percent to $ 175.90.
Why is the Nvidia course falling?
The most valuable company in the world and the poster child of the AI revolution again showed solid growth in the past quarter.
Strong sales figures for the company’s AI chips helped Nvidia that the blow it got in China.
Earlier this year, the Trump government blocked the export of H20 chips, which Nvidia designed specifically for the Chinese market. After that, the company concluded a deal so that they now have to give 15 percent of all China turnover to the US government.
At the moment it is still unclear how quickly all this can recover. And there is currently the problem for Nvidia, there is a lot of uncertainty about China among investors, and that is simply an important market.
In the financial preview, the sale of H20 chips in China was completely left out of sales expectations. As a result, this $ 2 billion was lower than expected, and that did not work out well on Wall Street.
Within Nvidia one remains optimistic
The atmosphere remains optimistic within the company. That makes sense, because they must give the outside world the idea that the AI revolution is not nearly over.
For example, CEO Jensen Huaang predicted that the expenditure for AI infrastructure will only increase in the coming years, while some investors are concerned about the pace of the investments, which they believe cannot be sustained.
It is clear that Nvidia becomes more sensitive to bad news. Where the shares used to go like a rocket, the pace of the price increases is now a bit less and that of course investors also get worse.
Now it becomes interesting to see how the share will respond to the developments of last night.
Source: https://newsbit.nl/nvidia-publiceert-sterke-kwartaalcijfers-toch-daalt-aandeel-3/
