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Nvidia (NVDA) posted its second quarter earnings report after the closing bell on Wednesday. The chip giant beat analyst expectations on both the top and bottom lines, yet its results failed to impress investors’ sky-high expectations, sending shares downward in Thursday’s session.
US Bank Wealth Management senior investment strategist Rob Haworth joins Market Domination to break down Nvidia’s earnings and what investors are looking for moving forward.
“What we saw is investors were somewhat disappointed with the beat. I mean, you had this beat of expectations on the Nvidia side. It’s still fairly good news for the future there. But it wasn’t quite as good as investors hoped. And I think the challenge is we may be moving kind of past that peak acceleration in artificial intelligence spending. And that’s maybe some of the concern we’re seeing here,” Haworth explains.
He adds that expectations aren’t keeping up with where the market (^DJI, ^IXIC, ^GSPC) is priced, leading to Nvidia’s sell-off seen in Thursday trading. He notes that the phenomenon is also being seen in other tech companies, indicating a rotation occurring in the market.
For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
This post was written by Melanie Riehl
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