Nvidia sinks after cutting its guidance

Photo by Ethan Miller/Getty ImagesNvidia Founder, President and CEO Jen-Hsun Huang
  • Nvidia topped Wall Street’s earnings expectations on Thursday but cut its third-quarter revenue forecast.
  • The chipmaker now expects third-quarter revenue to be around $US3.25 billion where the Street had previously expected $US3.34 billion.
  • Follow Nvidia’s stock price in real-time here.

Shares of Nvidia fell 6% in after-hours trading Thursday following a guidance cut from the chipmaker despite posting second-quarter earnings that topped Wall Street’s expectations.

Here are the key figures:

Earnings: $US1.94 per share where analysts had expected $US1.85.

Revenue: $US3.12 billion where analysts had expected $US3.11 billion.

“Growth across every platform – AI, Gaming, Professional Visualisation, self-driving cars – drove another great quarter,” Jensen Huang, Nvidia’s chief executive, said in a press release.

“Fuelling our growth is the widening gap between demand for computing across every industry and the limits reached by traditional computing. Developers are jumping on the GPU-accelerated computing model that we pioneered for the boost they need.”

The company also announced plans to return $US1.25 billion to shareholders in fiscal year 2019, starting with a $US0.15 dividend per share on September 21 to all shareholders on record as of August 30.

For the third quarter, Nvidia forecasted its revenue to be within 2% of $US3.25 billion where the Street had expected $US3.34 billion.

Shares of Nvidia closed down 0.35% Thursday after falling as much as 1.5% in regular trading ahead of the report.

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