- Nvidia shares are sliding more than 4% Friday after cutting its guidance.
- “We’re including no contributions from crypto in our outlook,” said Nvidia’s CFO Colette Kress.
- Wall Street remains bullish on Nvidia despite the less upbeat outlook.
- Watch Nvidia’s stock price in real-time here.
The chip maker slightly topped Wall Street’s expectations on Thursday, but cut its third quarter revenue forecast to $US3.25 billion from $US3.34 billion due to declining sales from its crypto business.
Even so, Wall Street analysts remain bullish on Nvidia.
“Even with the weaker outlook, sales are growing 23% y/y, just as the sustainable revenue streams are beating consensus,” William Stein, an analyst at SunTrust said while maintaining his “buy” rating and $US316 price target – more than 22% above where shares settled Thursday.
“Shares could see near-term weakness following softer guidance, particularly after a strong run the past 2-3 years. With three solid, structural growth drivers in DC AI, gaming and autonomous, we see continued outsized growth.”
Nvidia shares are up 25% this year.
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