Nvidia share price slip to the Q2 results despite record revenue; China sales prospects weigh

The Nvidia share price fell by more than 3% on Wednesday after the company reported its earnings in the second quarter. The share fell 3.14% to $ 181.60 in the after-hours trade, which wiped out almost $ 110 billion to market value and brought its market cap to $ 4.43 trillion. For the second quarter ended July 27, Nvidia achieved an income of $ 46.7 billion, 56% higher than a year earlier and slightly above Wall Street’s $ 46.2 billion estimate. It was the slowest rate of growth in more than two years. The adjusted profit was $ 26.4 billion, or $ 1.05 a share, and beat the $ 1.01 consensus forecast. The company’s most important data center unit delivered $ 41.1 billion sales slightly among the analysts’ $ 41.3 billion expectations. The game revenue was $ 4.29 billion, exceeding $ 3.8 billion estimates, while car sales were $ 586 million, just shy for projections. The Nvidia board of directors also approved a new $ 60 billion repurchase program, in addition to the $ 14.7 billion that remained below its previous repurchase plan at the end of the second quarter. According to the Lseg data, Nvidia saw ahead for the third quarter and led an income of $ 54 billion for the third quarter, plus or minus 2%, before analysts’ average forecast of $ 53.14 billion. China sales weigh on prospects despite the strong results, and concerns about the China business in Nvidia overshadowed the optimal guidance. The company has a $ 4 billion drop in sales of its H20 processors chips that have been made known for the Chinese market amid increasing trading in US China. The company’s third-quarter prediction excludes any contribution of H20 sales. CEO Jensen Huang said Nvidia expects to resume the shipping to China as soon as it received the US government’s approval under an agreement with President Donald Trump who would pay commissions to Washington. With no formal rules in place and uncertainty about possible setbacks from Chinese regulators, Nvidia kept him from assessing China’s sales in the prospects of the short term, Reuters reported. (With input of agencies) Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, and not of currency. We advise investors to check with certified experts before making investment decisions.