Markets waited until the middle of the week for Nvidia (NVDA) to post quarterly results. Unfortunately, shares risk falling by around 7% at prices not seen in several weeks.
In Q2, Nvidia earned 68 cents a share. Revenue grew by 122% Y/Y to $30 billion. CEO Jensen Huang assured investors in the AI space about Blackwell and its server refresh. He said that Hopper server demand is still strong and that the anticipation for Blackwell is incredible. Nvidia customers are in full throttle to modernize their entire computing stack with accelerated computing and generative AI.
Profit taking on the news will send other semiconductor stocks lower today. AMD (AMD), ARM Holdings (ARM), and Intel (INTC) will likely close the day lower.
On Wednesday, Super Micro Computer (SMCI) unexpectedly warned the markets that it would delay its 10-K filing. This news is unusual because it follows a day after Hindenburg Research published a short-sell thesis against SMCI stock.
SMCI stock fell by 19% and will open down by around 7% this morning. SMCI said that management needed time to complete its “assessment of the design and operating effectiveness of its internal controls” in financial reporting. The firm will likely re-state earnings or revenue in previous years. This is a major setback for AI stocks because it may incite market panic. Valuations of overpriced firms will come down.