Nvidia shares fell after a stellar earnings report

2022-06-20 0 By

Nvidia reported Q4 revenue of $7.64 billion, beating market expectations for the seventh consecutive quarter, and full-year net income of $9.775 billion, double last year’s $4.332 billion.Nvidia’s data center business is also booming, with revenue of $3.26 billion in the fourth quarter, up 58% from a year ago.Even though Nvidia missed out on ARM, the results have achieved a high level of growth, and all of nvidia’s financial numbers are better than market expectations, showing its strength once again.Nvidia’s CEO also stressed in the earnings call that demand for nvidia’s computing platform is strong, and that the company is pushing forward in AI, climate science, robotics and other areas where it has an impact.Analysts on Wall Street also reiterated their “overweight” rating on Nvidia, stressing that the company could be a big winner this quarter, as Nvidia also forecast $8.1 billion in revenue for the first quarter of 2023 and continued high buy rates, but due to the ARM deal,Nvidia’s operating costs are likely to be around $3.55 billion in the next quarter.Despite the strong earnings numbers, Nvidia shares fell 2.68% after hours.Andi Duan, KlipC, said: “There is no consensus on nvidia’s valuation after nearly 30 per cent of the stock price decline since November, which may be related to macro factors, so investor risk aversion will prevail even if Nvidia’s earnings are solid.”At the same time, negative news such as the Russia-Ukraine situation, rising INFLATION in the US and the Fed’s rate hike expectations were weighing on us stocks’ pre-market performance, Mr Duan said, adding that “dark clouds are looming over Nvidia”.