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Nvidia stock (NVDA) investors saw a roller-coaster ride ahead of its Q2 earnings release in August. Its share price dropped below $100 on August 5, rebounded, and went up for six consecutive days from the 12th to the 19th. Nvidia traded at around $128 on August 21.
Nvidia’s early-month plunge was partly due to the global market turmoil after the yen-carry trade and a potential chip delivery delay caused by a design flaw in the Blackwell architecture.
The chip giant remains the AI industry leader, with an 80% market share in AI processors. But rivals like AMD are picking up the pace.
On August 19, AMD announced a 5 billion acquisition of ZT Systems to boost its GPU sales. Nvidia stock lost 2% on the next trading day. GPUs are hardware specialized in performing the matrix calculations required by AI processing.
Related: Analysts reset AMD stock outlooks after AI acquisition
Nvidia will post its fiscal Q2 earnings on August 28. Whatever the results, they will mark a key weather vane for the AI and the semiconductor industry. The earnings reports from its peer chip makers can be a good reference for earnings prediction and future stock price movements.
The No. 2 market player, AMD, delivered strong Q2 earnings on July 30, exceeding analysts’ expectations for both revenue and profits. Revenue rose 9% to $5.84 billion, while earnings increased by 19% to 69 cents a share. It also sees robust AI demand ahead.
But Intel tumbled on an earnings miss. On August 1, the company reported a net loss of $1.61 billion, compared with a net income of $1.48 billion a year earlier. Revenue and earnings were also lower than analysts’ forecasts.
Intel attributed the loss to a decision to more rapidly produce Core Ultra PC chips that can handle AI workloads, according to CEO Pat Gelsinger.
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