Nvidia trounces estimates for earnings and revenue, shares still tank 8%

Nvidia reported profits and revenues that were much stronger than analysts had expected Thursday.

The maker of graphics processing units said it earned $US1.10 per share on an adjusted basis, topping the forecast for $US0.82 according to Bloomberg. Its revenue totaled $US2.23 billion, beating the forecast for $US1.96 billion.

Nvidia shares gained 2% before slumping by as much as 8%. They rallied 54% this year through Thursday’s close.

In the earnings statement, Nvidia CEO Jensen Huang said use of its chips in games like the Nintendo Switch and in data centres helped drive growth during the second quarter.

More to come …

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