Nvidia Q2 Earnings Beat Expectations But Stock Falls

Nvidia reported strong Q2 2024 earnings with $30 billion in revenue, up 122% year-on-year and beating analyst expectations, yet its stock fell about 6% in after-hours trading. Despite surpassing revenue estimates, Nvidia's forecast of $32.5 billion for Q3 failed to meet some of the highest investor expectations, leading to concerns about the sustainability of its explosive growth. Market analysts have noted that Nvidia's strong pricing power is supported by high demand and tight supply of its chips, but warned that future capital expenditure trends from major tech firms could erode this advantage. The earnings report also impacted AI-related cryptocurrencies, which tumbled following the announcement. Nvidia's future growth hinges on the successful deployment of its next-generation Blackwell chip, set for shipment in Q4. Overall, while Nvidia continues to ride the AI boom, investor sentiment remains cautious amid lofty expectations.