Nvidia, the massive 2.5 Trillion dollar software and chip maker that supplies companies like Microsoft, Meta, Amazon, and Alphabet saw its shares tank after they posted earnings.
On Wednesday, August 28th, Nvidia reported a much anticipated earning report for their fiscal second quarter. The report was a positive one from all accounts. Nvidia reported over $30 billion dollars in sales, 122% more than last year's second quarter and 1.3 billion over Wall Street analysts expectations. Profits from the quarter also more than doubled to $16.6 billion, up from the $15 billion analyst projection.
In after-market trading Nvidia dropped 5%, this has had a ripple effect on the market as Nvidia has about a 6.19% weight in the S&P 500, led only by Apple and Microsoft and almost double Amazon. Since the Earnings report on August 28th, The S&P 500 is down 3.3% and Nvidia is down 15%.
The drop in shares comes as a surprise due to the company’s ability to consistently meet high-demand. This attribute has cemented Nvidia as one of the most influential companies in the tech landscape. However, this dominance brings big expectations from investors and high scrutiny.
Nvidia’s post market drop caused panic among investors. Specifically, investors who were informed of what was causing the change. Only time will tell if Nvidia is able to rebound from a catastrophic two weeks.
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