Are you interested in semiconductors investing? If so, pay close attention to the following: On Thursday, in after hours trade, Nvidia Corporation (NASDAQ:$NVDA) shares tumbled. Surprisingly, this plunge occurred after the Santa Clara, California-based company posted both earnings and sales beats.
Let’s take a look at the earnings:
For the second quarter, Nvidia generated earnings of 92 cents a share on revenue of $2.23 billion, which is up 56% from the same quarter in 2016. According to FactSet, analysts had modeled gains per share of 70 cents, and sales of $1.96 billion. It’s worth mentioning that Nvidia has surpassed the FactSet consensus for earnings the last eight quarters in a row.
In regards to Nvidia’s third quarter, executives forecast Q3 sales guidance to be $2.35 billion, with a 2% margin of error. On the other hand, according to FactSet, analysts modeled revenue of $2.1 billion.
Over the course of the past, Nvidia stock has almost tripled. Analysts are apparently worried about ‘overhype’ in the market, which is the only explanation for how the Santa Clara, California-based company has seen its shares drop. Even then, the predictions could be a bit premature, as Nvidia is performing extremely well in a sector – gaming – that also seen large gains.
Featured Image: twitter
