Nvidia (NVDA) released its second-quarter earnings report after the close of trading on Wednesday. The semiconductor giant beat analyst expectations on both sales and profits, but the results fell short of investors’ sky-high expectations, sending the company’s shares lower in Thursday trading.
Rob Haworth, senior investment strategist at U.S. Bank Wealth Management, joins Market Domination to analyze Nvidia’s earnings and what investors can expect going forward.
“Investors were probably a little disappointed that it beat expectations. I mean, on NVIDIA’s side, it beat expectations. It’s still good news going forward. But it wasn’t as good as investors would have hoped. And the issue is, we may be passing the peak of the acceleration in artificial intelligence spending. And that may be part of the concern that we’re seeing here,” Howarth explained.
He added that expectations have not kept up with the pricing in the market (^DJI, ^IXIC, ^GSPC), which led to the sell-off in Nvidia seen in Thursday’s trading. He noted that this phenomenon has also been seen in other tech companies, signaling a rotation is occurring in the market.
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This post was written by Melanie Leal
