Nvidia (NASDAQ: NVDA) recently announced its second-quarter earnings results, causing a 3.2% drop in its stock price. While the AI leader exceeded Wall Street’s expectations for Q2 and provided strong guidance for the third quarter, concerns about the delay in its next-generation Blackwell processors are overshadowing the positive news.
In the second quarter, Nvidia reported adjusted earnings of $0.68 per share on revenue of $30 billion, surpassing analysts’ estimates. The company’s sales were up 122% year over year, with AI-related demand driving growth in data center revenue by 154%. Despite a slight decline in adjusted gross margin from the previous quarter, Nvidia’s pricing power on advanced hardware remained strong.
For Q3, Nvidia expects revenue of $32.5 billion and an adjusted gross margin of 75%. However, investors are more focused on the potential delay in the release of Blackwell processors, with production ramping up in the fourth quarter of this year. This delay could push the release into 2025, missing the initial 2024 target.
While investors are cautious about the Blackwell delay, it’s essential to consider the long-term potential of Nvidia as an investment. The Motley Fool Stock Advisor analyst team identified Nvidia as a solid investment in the past, providing significant returns to investors. By following their guidance and investing in the right stocks, investors have the opportunity to achieve substantial gains.
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