Nvidia shares fall despite record second-quarter revenue beating expectations

But Nvidia’s shares fell about 6% in after-hours trading on Wednesday as anticipation grew for the company’s earnings report.

Nvidia reported revenue of $30 billion for the three months ended July 28, up 122% from a year earlier and well above analysts’ expectations of $28.9 billion, according to Bloomberg estimates. The company said the performance was driven by sales of Nvidia’s Hopper GPUs. Strong demand for Nvidia’s chips boosted profits, helping the company’s gross margin to 75.1% and adjusted earnings per share to 68 cents.

Chief Financial Officer Colette Kress, in prepared remarks, said the company “modified Blackwell’s GPU masks to improve production yields” and plans to ramp up production in the fourth quarter of this year.

It’s unclear whether the change is related to the design flaw reported by the technology news site. information The company reported earlier this month that shipments would be delayed by more than three months, a period that falls within the company’s previous promise to ship Blackwells later this year but is nearing the end of that deadline.

“We expect Blackwell’s sales to reach several billion dollars in the fourth quarter. Demand for hoppers is strong and we expect shipments to increase in the second half of fiscal 2025,” Kress said.

Nvidia has become one of the biggest beneficiaries of the AI ​​boom, as internet companies such as Google, Meta and Amazon spend tens of billions of dollars on infrastructure to provide AI services.

Nvidia currently controls 90% of the AI ​​chip market, according to analysts, though it faces competition from rival chipmaker AMD and upstarts such as Cerebras and Grok. That dominance has helped fuel a surge in the company’s shares, which have more than doubled this year and now account for about 7% of the S&P 500.