"Indeed, you'd have to dig pretty deep into the numbers to find any kind of fly in the ointment, so to speak. Data center revenue, which grew a scorching-hot 56%, marked a slight miss. Still, I think there was a lot of interference that made a red-hot business look somewhat lukewarm relative to analyst expectations. And if Nvidia looks to start selling AI chips to China, perhaps the latest quarterly fumble could make way for a more promising one in the near future."
"With "supply constraint" rumors swirling around and broad markets taking a slide to start the month of September, it seems like an uneasy time to be a dip-buyer, even for those who think the latest quarter takes nothing away from the AI boom. For now, though, I think there are more promising AI stocks out there for those who are worried that much of the past years' worth of gains will be given back as the GPU maker faces its next big test."
Nvidia reported a strong second quarter with data-center revenue growing 56%, though that metric slightly missed analyst expectations. Supply-constraint rumors and a September market pullback contributed to a more cautious investor reaction and a share decline of over 5% following the results. Potential future sales of AI chips to China could present growth opportunities and help offset the recent softness. Some investors view the current environment as risky for dip-buying despite the ongoing AI-driven demand for GPUs. Competing large-cap tech names such as Apple and Alphabet are cited as having catalysts that could challenge Nvidia's near-term leadership.
Read at 24/7 Wall St.
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