This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) dipped 2.7% in late trading Wednesday even after topping Wall Street’s expectations, hiking guidance, and rolling out a $60 billion share buyback program.
For the quarter ending July 27, the chipmaker earned an adjusted $1.05 a share on $46.74 billion in revenue, ahead of forecasts for $1.01 a share on $46.13 billion. Data center sales surged 56% to $41.1 billion but came in just shy of estimates, with the company noting it booked no H20 sales to China. Instead, Nvidia benefited from a $180 million boost from previously reserved H20 inventory tied to non-China sales. Gaming revenue jumped 49% to $4.3 billion, while auto and professional visualization climbed 69% and 32%.
Margins stayed strong at 72.7%, helped by that H20 release. Looking ahead, Nvidia sees Q3 revenue around $54 billion, better than consensus at $53.46 billion, while keeping China sales at zero for now.
CEO Jensen Huang said Blackwell chips are the AI platform the world has been waiting for, with demand running extraordinary as reasoning models ramp up. Some analysts expect the stock pullback to be short-lived, especially if China demand surprises in coming quarters.
