Current:Home > MarketsNvidia sees stock prices drop after record Q2 earnings. Here's why. -Aspire Money Growth
Nvidia sees stock prices drop after record Q2 earnings. Here's why.
View
Date:2025-04-14 12:21:34
Shares in the California-headquartered chip designer Nvidia have fallen after investors were worried by signs of slowing growth, despite the artificial intelligence chip-manufacturing company posting a 122% rise in second-quarter revenues compared to last year.
Nvidia has become one of the world’s most valuable companies, with investors expecting artificial intelligence to become a driver of the economy in future years.
The stock fell as much as 7% in pre-market trading, before paring back losses to a 2% fall in early trading on New York’s Nasdaq. The chipmaker is the third most valuable company in the world, with a market value of $3.1tn.
Simon French, the chief economist and head of research at the investment bank Panmure Liberum, told the BBC that there were several reasons for Nvidia's stock dropping.
“There were just some signs around the edges in numbers that that rate of growth was trying to slow," French said. "Their current AI chip ‘hopper’ is selling well, but the next one, the next generation Blackwell, has faced some production delays, and that perhaps is one of the reasons why Wall Street, after hours, sold off the stock.”
Nvidia's closing price on Thursday was $117.59 (-6.38%).
How much has Nvidia stock risen recently?
Nvidia stock has soared 765% since the start of 2023, when the AI boom really started ramping up. It's now a $3.1 trillion company, so even a small move in its stock can be worth billions of dollars to its valuation.
What does Nvidia do?
Nvidia is a chip-manufacturing company founded in 1993 in Santa Clara. Its artificial intelligence clients include ChatGPT, Amazon, Snap and Google, according to a brief provided by the company. The company also produces graphics cards that are key for modern gaming.
The company currently employs about 30,000 people.
USA TODAY contributed to this report.
veryGood! (9)
Related
- Senate begins final push to expand Social Security benefits for millions of people
- Emhoff will discuss antisemitism and gender equity during annual meeting of elites in Switzerland
- Jeremy Allen White's Sweet Emmys Shoutout to Daughters Ezer and Dolores Will Melt Your Heart
- AP VoteCast: Iowa caucusgoers want big changes, see immigration as more important than the economy
- The FBI should have done more to collect intelligence before the Capitol riot, watchdog finds
- DeSantis takes second place over Haley in Iowa caucuses, vowing to remain in 2024 race
- Do you need to file a state income tax return for 2023? Maybe. Here's how it works
- Will Meghann Fahy Appear in Season 3 of The White Lotus? See Her Reaction
- New Mexico governor seeks funding to recycle fracking water, expand preschool, treat mental health
- It's so cold, Teslas are struggling to charge in Chicago
Ranking
- House passes bill to add 66 new federal judgeships, but prospects murky after Biden veto threat
- Ecuador declares control over prisons, frees hostages after eruption in war with drug gangs
- An emotional Christina Applegate receives a standing ovation at the Emmys
- Proof It’s All Love Between Ariana DeBose and Bella Ramsey After Critics Choice Awards Jab
- DeepSeek: Did a little known Chinese startup cause a 'Sputnik moment' for AI?
- Opportunity for Financial Innovation: The Rise of EIF Business School
- Elton John Reacts to Becoming an EGOT After 2023 Emmys Win
- Greta Lee on how the success of Past Lives changed her life
Recommendation
How to watch the 'Blue Bloods' Season 14 finale: Final episode premiere date, cast
All My Children Actor Alec Musser's Cause of Death Revealed
Brazil’s Rio de Janeiro state confronts flood damage after heavy rain kills at least 12
'The streak has ended!' Snow no longer a no-show in major East Coast cities: Live updates
Man can't find second winning lottery ticket, sues over $394 million jackpot, lawsuit says
People are eating raw beef on TikTok. Here's why you shouldn't try it.
Another day of frigid wind chills and brutal cold across much of the U.S.
Pakistan’s ex-Prime Minister Imran Khan indicted on charge of violating Islamic marriage law