HomeFinancial MarketsNvidia Stock Dips After Earnings Miss Wall Street Estimates

Nvidia Stock Dips After Earnings Miss Wall Street Estimates

Nvidia kept its second-quarter earnings report away from the public longer than expected, and now we know why. The chipmaker missed Wall Street estimates, including earnings per share and Q3 revenue projections. As a result, the company’s stock dipped close to 5% in after-hours trading.

Nvidia’s $6.7 billion Q2 revenue matched the $6.7 billion expected, but its adjusted earnings per share missed on $0.53 estimated and came to $0.51. The Santa Clara, California-based company also had a net income of $656 million, representing a 72% year-over-year decrease.

For the third quarter of the year, Nvidia predicts that it will bring in $5.9 billion in revenue, falling $1 billion short of the $6.9 billion predicted by analysts. The biggest reason for Nvidia’s poor results and bleak expectations has been slumping sales in the gaming department. With the pandemic no longer keeping people inside the house, there are fewer reasons to invest in expensive gaming equipment, which directly impacts the chipmakers.

Nvidia shares closed at $172.22 on Wednesday, which represents a 42.2% drop year-to-date. After the Q2 results came out, the stock came down even further, trading for $164.40 in the after-hours market.

“We are navigating our supply chain transitions in a challenging macro environment, and we will get through this,” said Nvidia founder and CEO Jensen Huang in a statement.

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