Breakfast | NVIDIA plunged 8% after financial report, revenue outlook falls short of analysts' upper limit forecast

US stocks fell across the board, with the Nasdaq falling more than 1% and the Dow bidding farewell to its record high. NVIDIA fell 2.1% and fell more than 8% after hours, Super Micro Computer fell more than 19%, and Li Auto fell more than 16%.

NVIDIA plunged more than 8% after the financial report, performance exceeded expectations, but revenue outlook did not reach the upper limit of analysts' forecast range

In the second quarter, NVIDIA's revenue hit a new quarterly high, exceeding expectations by 122%. The third-quarter revenue guidance indicates a maximum growth of 83%, the first time in six quarters that it is below 100%, stronger than the Wall Street consensus but lower than the highest expectations of continued triple-digit growth. NVIDIA plans to add $50 billion in share repurchases. Jensen Huang stated that the demand for Hopper chips is strong, and external expectations for Blackwell are "unbelievable"; the CFO stated that Blackwell samples have been delivered in the second quarter, Blackwell has been improved, and did not answer whether the revenue of Blackwell in the fourth quarter, amounting to billions of dollars, is incremental.

After hours, NVIDIA initially rose more than 2%, then fell more than 8%, and is now down about 7%.

From the financial data, NVIDIA continued to crush Wall Street expectations in the second quarter, setting a new record for quarterly revenue, higher than the entire guidance range of the company, with triple-digit growth for the fifth consecutive quarter. The data center business benefiting from the AI boom saw a significant slowdown in growth compared to the previous quarter but still maintained triple-digit growth.

Comments believe that the most influential factor on NVIDIA's stock price may be the mixed guidance for the third quarter.

Based on the guidance range, NVIDIA is expected to grow by 75.8% to 82.9% year-on-year in the third quarter. Morgan Stanley expects revenue to be in the middle of the range at $32.5 billion, an 81.8% increase, while the highest revenue expected by analysts implies a growth of 109.2%. In other words, NVIDIA expects revenue growth in the third quarter to slow to double digits for the first time in the past six quarters, while Wall Street's optimistic expectations still maintain triple-digit growth.

In addition, the company stated that it is working to address production obstacles for the highly anticipated next-generation Blackwell chip, which has put pressure on the company's stock price in after-hours trading. Prior to announcing this news, there were concerns about design issues with NVIDIA's Blackwell. NVIDIA acknowledged production issues and stated that changes are being made to increase its output. At the same time, the company expects the product to bring in "billions of dollars" in revenue in the fourth quarter.

"AI Monster" Super Micro Computer plunges 19%

Intraday losses expanded to 26%, marking the worst intraday performance since March 2020. After a short report by Muddy Waters on Tuesday, Super Micro Computer announced a delay in releasing its Q4 financial report. Management needs more time to assess the design and operational effectiveness of internal controls.

Li Auto plunges, leading to a collapse in new car forces

Li Auto fell by 16.12%, with an operating profit of 468 million yuan in the second quarter, a year-on-year decrease of 71.2%. Among the new car forces, XPeng fell by 9%, Nio fell by 7.5%, and ZEEKR fell by 9.85%.

Market value breaks 1 trillion for the first time! Berkshire Hathaway joins the "Trillion Dollar Club"

On Wednesday, Berkshire Hathaway's market value exceeded $1 trillion, reflecting investors' confidence in this conglomerate built by "Stock God" Warren Buffett over nearly 60 years. Many believe that Berkshire Hathaway represents the U.S. economy. This also means that Berkshire Hathaway has joined the "Trillion Dollar Club" consisting of six other companies with market values exceeding $1 trillion, namely: Apple, NVIDIA, Microsoft, Google, Amazon, and Meta