What's Going On With Nvidia Stock?
Nvidia shares are down 3.3% to $174.14 as investor focus shifts from strong earnings to softer forward guidance amid geopolitical concerns in China. Despite a strong Q2 with $46.74 billion in revenue and a $60 billion share buyback announcement, Nvidia's outlook for Q3 revenue fell short of expectations, raising concerns about potential sales slowdowns. The company’s growth narrative faces challenges, particularly with 40% of revenue linked to major hyperscalers. The stock has a 52-week high of $184.48 and a low of $86.62.
NVIDIA Corp NVDA shares are trading lower Friday following reports of DeepSeek shifting to Huawei AI chips and Alibaba Group Holding Ltd – ADR BABA unveiling a new AI chip.
Investor focus has also shifted from another quarter of blockbuster earnings to softer forward guidance and deepening uncertainty over sales in China. Here’s what investors need to know.
What To Know: The company this week posted a strong second-quarter double beat, with revenue of $46.74 billion and adjusted earnings per share of $1.05, both surpassing Wall Street estimates.
Propelled by voracious demand for its AI processors, Data Center revenue surged an incredible 56% over the previous quarter. Nvidia also sought to reassure investors of its robust future by announcing a new $60 billion share buyback program.
Despite these impressive results, the stock faltered on the company’s outlook. Nvidia guided for third-quarter revenue in a range of $52.92 billion to $55.08 billion. The midpoint of this forecast fell slightly below the most bullish analyst expectations, exposing what one market watcher called the “first real crack” in the company's seemingly unstoppable growth narrative.
Weighing heavily on the outlook is the geopolitical situation with China. The guidance assumes no shipments of its high-performance H20 chips to the crucial Chinese market. With roughly 40% of Nvidia’s revenue coming from major hyperscalers like Amazon, Google and Microsoft, any perceived slowdown is now rippling through the broader tech sector.
Benzinga Edge Rankings: Reinforcing its powerful expansion narrative, Benzinga Edge stock rankings give Nvidia a near-perfect growth score of 99.29.
Price Action: According to data from Benzinga Pro, NVDA shares are trading lower by 3.3% to $174.14 Friday morning. The stock has a 52-week high of $184.48 and a 52-week low of $86.62.
Read Also: Alibaba Sees Historic Opportunities As CEO Points To AI And Quick Commerce Wins
How To Buy NVDA Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in NVIDIA’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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