NVIDIA Shares Drop 6% on Disappointing Guidance, While Q1 Earnings Beat
- S&P 500 closes the book on its biggest first-half plunge since 1970
- Micron (MU) Shares Drop 4% on Significant Q4 Guidance Miss
- S&P 500 on Track for Worst First-Half in 60 Years
- Exclusive-Meta slashes hiring plans, girds for 'fierce' headwinds
- Tesla Could Make Billions from Opening Up Its EV Supercharger Network - Goldman
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
NVIDIA (NASDAQ: NVDA) shares were trading around 6% lower after-hours following the company’s reported Q1 earnings results. While both the EPS of $1.36 and revenue of $8.29 billion (up 46% year-over-year) came in better than the consensus estimates of $1.29 and $8.12 billion, respectively, Q2 revenue guidance missed the expectations.
The company delivered record results in Data Center and Gaming. Data Center Q1 revenue was $3.75 billion (up 83% year-over-year) and Gaming revenue was $3.62 billion (up 31% year-over-year).
“We delivered record results in Data Center and Gaming against the backdrop of a challenging macro environment,” said Jensen Huang, founder and CEO of NVIDIA. “The effectiveness of deep learning to automate intelligence is driving companies across industries to adopt NVIDIA for AI computing. Data Center has become our largest platform, even as Gaming achieved a record quarter. “We are gearing up for the largest wave of new products in our history with new GPU, CPU, DPU and robotics processors ramping in the second half. Our new chips and systems will greatly advance AI, graphics, Omniverse, self-driving cars and robotics, as well as the many industries these technologies impact,” he said.
The company expects Q2/23 revenue to be $8.10 billion, plus or minus 2%, worse than the consensus estimate of $8.45 billion.
The company’s board of directors also announced an additional share repurchase program of up to $15 billion through December 2023.
Shares of NVIDIA were down 42% year-to-date going into the results.
By Davit Kirakosyan
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Micron Technology (MU) Tops Q3 EPS by 15c, Guidance Misses Badly
- Siemens and NVIDIA to Enable Industrial Metaverse
- Wall Street Veteran Ball Believes S&P 500 Will Fall to 3,100
Create E-mail Alert Related CategoriesEarnings, Hot List, Trader Talk
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!