Nvidia and the record results that put the AI world on “alarm”
Nvidia presents record results but with less than sparkling forecasts on the possible growth and the outcome in Bag he didn’t keep us waiting. The actions Nvidia in aftermarket trading lost about 8.5% and chip manufacturers Asian markets, where the stock markets were open, were hit hard.
In fact in Taiwan Tsmc, among the world’s largest chipmakers, lost 2%. Things went worse for Nvidia’s own key chip supplier, SK Hynixdown 6%, while its main competitor, Samsung, in Seoul lost 3%. In Japan, the maker of chip testing equipment, Advance Testlost 0.5%, while Tokyo Electron has dropped by 1.1%. Nothing dramatic then but wasanalysts say, precisely Nvidia’s own revenue boom has fueled fears that AI’s growth is losing steam.
As for the accounts, Nvidia, in the second fiscal quarter of 2025, recorded a useful equal to 16.6 billion dollars with revenues at 30 billion which means a growth of 122% compared to a year ago and 15% compared to the previous quarter.
Very respectable numbers but the guidance communicated, which forecasts third-quarter revenue of 32.5 billion dollars, did not convince analysts even though big tech companies, like Google, Amazon and Meta Continue to Invest in Nvidia GPUs necessary to implement the performance of artificial intelligence.
In fact, despite the efforts of competitors such as amd and Intel itself trying to gain market share in the segment of chips for large data centers dedicated to AI, Nvidia’s share is around 90%. According to Eric Schmidtformer CEO of Google, the problem for competitors is this: most of the open source tools used by developers to implement the services that AI can provide are based on Nvidia’s Cuda programming language, and although AMD has created software to translate this code for its chips, it doesn’t work ideally.
Since Gpt Chatthe leading tool for the use of AI by consumer users, was presented in November 2022 capitalization Nvidia’s market value has increased by more than $2.7 trillion, with its stock price rising by about 700%, compared to a 45% increase in the U.S. stock index. Nvidia’s rise has been offset by the collapse of Intel which saw its shares fall by more than 40% in one year.
The PC chip giant has failed to interpret the AI revolution and now finds itself chasing competitors like AMD on high-end chips. Even Stma Franco-Italian chipmaker, has seen its stock price fall 40% in a year due to a slowdown in its core automotive and industrial markets.
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