Nvidia sinks after cutting its guidance

Nvidia
Founder, President and CEO Jen-Hsun Huang
Photo by Ethan Miller/Getty Images

• Nvidia topped Wall Street’s earnings expectations on
  Thursday but cut its third-quarter revenue
  forecast. 
• The chipmaker now expects third-quarter revenue to be
  around $3.25 billion where the Street had previously expected
  $3.34 billion.
• 
  Follow
  Nvidia’s stock price in real-time here.
  

Shares of Nvidia
fell 6% in after-hours trading Thursday following a guidance cut
from the chipmaker despite posting second-quarter earnings that
topped Wall Street’s expectations.

Here are the key figures:

Earnings: $1.94 per share where analysts had
expected $1.85.

Revenue: $3.12 billion where analysts had
expected $3.11 billion.

“Growth across every platform – AI, Gaming, Professional
Visualization, self-driving cars – drove
another great quarter,” Jensen Huang, Nvidia’s chief
executive, said in a press release.

“Fueling our growth is the widening gap
between demand for computing across every
industry and the limits reached by
traditional computing. Developers are jumping
on the GPU-accelerated computing model that we
pioneered for the boost they need.” 

The company also announced plans to return $1.25 billion to
shareholders in fiscal year 2019, starting with a $0.15 dividend
per share on September 21 to all shareholders on record as of
August 30. 

For the third quarter, Nvidia forecasted its revenue to be within
2% of $3.25 billion where the Street had expected $3.34 billion.

Shares of Nvidia closed down 0.35% Thursday after falling as much
as 1.5% in regular trading ahead of the report.

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