Synthetic intelligence (AI) chip giant Nvidia says its revenues for the three months to the top of July greater than doubled in comparison with a yr earlier, hitting a record $30bn (£24.7bn).
Nonetheless, the agency’s shares fell by greater than 6% in New York after the announcement.
Nvidia has been one of the largest beneficiaries of the AI growth, with its inventory market worth hovering to greater than $3tn.
The corporate’s shares have risen by greater than 160% this yr alone.
“It’s much less about simply beating estimates now, markets count on them to be shattered and it’s the dimensions of the beat as we speak that appears to have dissatisfied a contact,” stated Matt Britzman, senior fairness analyst at Hargreaves Lansdown.
The sky-high expectations are pushed by its valuation, which has surged ninefold in worth in beneath two years due to its dominance of the AI chip market.
Income for the interval soared, with working earnings rising 174% from the identical time final yr to $18.6bn.
It was the seventh quarter in a row that Nvidia had crushed analysts’ expectations on each sales and income.
“Generative AI will revolutionise each trade,” stated Nvidia chief govt Jensen Huang.
The outcomes have grow to be a quarterly occasion which sends Wall Avenue right into a frenzy of shopping for and promoting shares.
A “watch social gathering” had been deliberate in Manhattan, in accordance with the Wall Avenue Journal, whereas Mr Huang, famed for his signature leather-based jacket, has been dubbed the “Taylor Swift of tech”.
Alvin Nguyen, senior analyst at Forrester, advised the BBC each Nvidia and Mr Huang have grow to be the “face of AI”.
This has helped the corporate up to now, nevertheless it may additionally damage its valuation if AI fails to ship after companies have invested billions of {dollars} within the expertise, Mr Nguyen stated.
“A thousand use instances for AI isn’t sufficient. You want one million.”
Mr Nguyen additionally stated Nvidia’s first-mover benefit means it has market-leading merchandise, which its clients have spent many years utilizing and has a “software program ecosystem”.
He stated that rivals, reminiscent of Intel, may “chip away” at Nvidia’s market share in the event that they developed a greater product, although he stated this might take time.