Nvidia Slips After Earnings: Stock Futures Unmoved

As the market awaits the opening bell, stock futures are holding steady, with the S&P 500 e-mini futures up 0.1% and the Nasdaq 100 e-mini futures up 0.2%. However, Nvidia shares have slipped in after-hours trading following the release of the company's third-quarter earnings report. The stock was down 0.8% in after-hours trading, despite beating analyst estimates on both revenue and profit.

Nvidia reported revenue of $35.08 billion for the quarter, up 94% from the same period last year, and net income of $19.31 billion, more than doubling from the year-ago period. However, the company's guidance for the next quarter, which included revenue expectations of $37.5 billion, plus or minus 2%, and gross margins of 73% to 73.5%, was met with a mixed market reaction.

Analysts had been expecting revenue of $36.9 billion and gross margins of 74.6%, according to Visible Alpha. The slight decrease in gross margins may have contributed to the market's cautious reaction. Additionally, Morgan Stanley analysts warned of potential supply constraints that could limit the upside of Nvidia's near-term outlook.



Nvidia's data center segment was a standout performer in the third quarter, with revenue hitting a record $26.3 billion. This segment, which includes data center computing platforms and end-to-end networking platforms, contributed significantly to the company's overall earnings. Analysts expect the segment to climb to a fresh high of $29.28 billion in the third quarter.

Despite the slight dip in Nvidia's stock price, the company's strong earnings report and outlook for future growth have investors optimistic. Nvidia's new Blackwell AI chip, hailed as a "complete game changer" by CEO Jensen Huang, has sparked significant market interest. Analysts and investors alike are eagerly awaiting updates on its shipments, with Morgan Stanley warning of potential supply constraints.



As the market awaits the opening bell, investors will be watching for any further developments in Nvidia's stock price and the broader market. With strong corporate earnings and technological advancements driving the bull market, investors remain optimistic about the future of the market. However, potential risks, such as supply chain issues and geopolitical tensions, should be carefully monitored to ensure continued growth and success.