Nvidia shares pared some losses in premarket trading on Thursday, shaking off an earlier decline as investors stayed confident about the chip giant's growth prospects despite a forecast that fell short of lofty expectations.
The company's shares were down 3.4 per cent after it forecast third-quarter gross margins that could miss market estimates and revenue that was largely in line, spurring a selloff across chip stocks including Broadcom, Advanced Micro Devices and Arm.
Nvidia has crushed Wall Street's estimates for several quarters on surging demand for AI chips, leading investors to bank on the company's penchant for routine blowout forecasts. The stock's strength has been a pillar of the market's rally through both this year and the past year - leading to what some say are ultimately insurmountable forecasts.
"They beat but this was just one of those situations where expectations were so high. I don't know that they could have had a good enough number for people to be happy," said JJ Kinahan, CEO of IG North America and president of online broker Tastytrade.
The forecast followed strong second-quarter earnings that topped Wall Street expectations, and the AI bellwether announced a new US$50 billion share buyback as well.
Shares of other chip companies also recovered some losses and were last trading down between 0.2 per cent and 1 per cent. U.S.-listed shares of TSMC, Nvidia's chip manufacturing partner, were last down marginally.
TSMC's shares 2330.TW on the Taiwan bourse also closed lower as Asian tech stocks tracked weakness in Nvidia, with South Korea's KOSPI index falling to a two-week low.
"Investors want more, more and more when it comes to Nvidia," said Dan Coatsworth, investment analyst at AJ Bell.
"It looks like investors might not have taken the average of analyst forecasts to be the benchmark for Nvidia's performance, instead they've taken the highest end of the estimate range to be the hurdle to clear."
Analysts on average forecast second-quarter per-share profit of 64 cents, with 71 cents apiece being the highest estimate. Nvidia reported earnings of 68 cents per share.
Big Tech stocks also seemed to shrug off the overhang from Nvidia's results. Shares of Google-parent Alphabet, Meta Platforms, Amazon.com and Apple were all up between 0.4 per cent and 1.5 per cent.
"Nvidia is seen as a bit of a bellwether, but despite the numbers being a bit weak, I think people are just sort of happy that it's out of the way. The long-term AI story is still sort of intact. It's just a bit of a relief that the numbers weren't disastrous," said Ben Barringer, analyst at Quilter Cheviot.
That comes as investors have also become concerned about increases in already hefty spending by Microsoft, Alphabet and other major players in the race to dominate emerging AI technology. Microsoft and Alphabet's stocks remain down since their reports last month.
Nvidia delaying the production ramp-up of its next-generation Blackwell chips until the fourth quarter was not much of a concern, analysts said, with the company seeing strong demand for its current-generation Hopper chips.
Nvidia also disclosed it had received requests for information from regulators in the U.S. and South Korea, adding to inquiries from the EU, U.K. and China previously, raising concerns of increased regulatory scrutiny on the company.
"After the DOJ win over Google, large-cap tech has got to be more cognizant of regulatory intervention ... historically, the threat was a little bit toothless. But now that they've got this win over Google, investors have to pay a bit more attention to it," Barringer said.
The lackluster response to Nvidia's earnings report could help set the tone for market sentiment heading into what is historically a volatile time of the year. The S&P 500 has fallen in September by an average of 0.8 per cent since World War Two, the worst performance of any month, according to CFRA data.
Investors are also watching next week's U.S. employment report for signs on whether the labour market weakness that roiled stocks in early August has dissipated.
Optimism about AI technology, in part due to Nvidia's explosive growth, has fuelled gains on Wall Street over the past year.
However, confidence in that rally has wavered in recent weeks following an earnings season that saw investors punish shares of tech companies whose results failed to justify rich valuations.
Nvidia forecast revenue of $32.5 billion, plus or minus 2 per cent, for its fiscal third quarter, compared with analysts' estimates of $31.8 billion, according to LSEG data. That revenue forecast implies 80 per cent growth from the year-ago quarter.
The Santa Clara, California-based company expects adjusted gross margin of 75 per cent, plus or minus 50 basis points, in the third quarter. Analysts on average forecast gross margin to be 75.5 per cent.
Nvidia's stock dropped 2.1 per cent in Wednesday's session, ahead of its report. It remains up about 150% so far in 2024, making it the biggest winner in Wall Street's AI rally.
The stock was valued at 36 times earnings ahead of its quarterly report, inexpensive compared to its average of 41 over the past five years. The S&P 500 is trading at 21 times expected earnings, compared to a five-year average of 18.
(Reporting by Noel Randewich in San Francisco, Saqib Ahmed in New York and Deborah Sophia in Bengaluru; Additional reporting by Aditya Soni, Kanchana Chakravarty and Medha Singh; Editing by Ira Iosebashvili, Lisa Shumaker, Mark Potter, Saumyadeb Chakrabarty and Shounak Dasgupta)
Conservative Leader Pierre Poilievre is asking NDP Leader Jagmeet Singh to pull out of the deal he has with Prime Minister Justin Trudeau, to force an election this fall.
A man being pursued in the killing of a woman in New Hampshire was fatally shot by police on a bridge that connects the state to Maine, authorities said Thursday. An 8-year-old child was found shot to death in the man's car.
Preserved brain samples dating back to early 17th-century Milan have tested positive for cocaine, a team of Italian researchers has found, but it's not immediately clear how it got into their systems.
Canadian weekly earnings remained consistent with months prior, but still four per cent higher than the same time last year, Statistics Canada reported Thursday.
Police say a man wanted for first-degree murder in the death of a Toronto-area woman has fled Canada.
A peaceful alpaca farm turned into a horrific scene after a violent dog attack left three animals dead and two injured on Monday evening.
For months, former President Donald Trump has been sitting on a social media fortune that he couldn’t touch. That will change very soon.
School divisions in Saskatchewan say they will be enforcing the province's pronoun law as children head back to class next week.
Financial planning experts say understanding how deductions are calculated on a paycheque is vital for employees budgeting their money, especially those just entering the workforce or new to Canada.
Police say a man wanted for first-degree murder in the death of a Toronto-area woman has fled Canada.
School divisions in Saskatchewan say they will be enforcing the province's pronoun law as children head back to class next week.
A doctor who was found guilty of sexually assaulting some of his patients over several years was sentenced in a Manitoba court on Thursday.
Residents reduced their water use again on Wednesday, the city's website shows, but it's still not at the target officials say will prevent critical issues with Calgary's water supply.
Alan Dougherty, co-owner of Estevan's Orpheum Theatre believes the historic theatre’s future is up in the air following recent flooding.
Canadian weekly earnings remained consistent with months prior, but still four per cent higher than the same time last year, Statistics Canada reported Thursday.
The U.S. Army on Thursday defended an Arlington National Cemetery employee who was pushed aside during a visit by former president Donald Trump, saying that she acted professionally and was being unfairly attacked.
A man being pursued in the killing of a woman in New Hampshire was fatally shot by police on a bridge that connects the state to Maine, authorities said Thursday. An 8-year-old child was found shot to death in the man's car.
A court in Thailand on Thursday found Daniel Sancho Bronchalo, a member of a famous Spanish acting family, guilty of premeditated murder and sentenced him to life in prison, in a lurid case that involved the victim being dismembered.
The Israeli military said it killed five more West Bank militants, including a local commander, as it pressed ahead Thursday with what appeared to be the deadliest operation in the occupied territory since the start of the war in Gaza.
A deadly food poisoning outbreak has led to the recall of more than seven million pounds of popular Boar's Head deli meats made at a plant in Virginia.
The baby in Gaza who was recently paralyzed by polio was infected with a mutated strain of the virus that vaccinated people shed in their waste, according to scientists who say the case is the result of “an unqualified failure” of public health policy.
Conservative Leader Pierre Poilievre is asking NDP Leader Jagmeet Singh to pull out of the deal he has with Prime Minister Justin Trudeau, to force an election this fall.
In less than two weeks, the federal government’s back-to-office mandate for public servants comes into effect. Employees will be required to work in-person at least three days a week and despite pushback from workers, the government says this is the right move.
Unless policies or technologies change, the cost of electric vehicles (EVs) needs to decrease by 31 per cent if Canada to wants to reach its sales target of 60 per cent EVs by 2030, according to the Parliamentary Budget Officer.
The maker of Tylenol defeated a lawsuit by U.S. consumers who said they were deceived into overpaying for 'Rapid Release' gelcaps that did not relieve pain faster than cheaper tablets, including those labelled Extra Strength and Regular Strength.
More than 20 people returning to the U.S. from Cuba have been infected with a virus transmitted by bugs in recent months. They all had Oropouche virus disease, also known as sloth fever.
Health officials in Canada are closely monitoring the public health situation in Massachusetts, following a report of one person having contracted Eastern Equine Encephalitis (EEEV) from a mosquito bite.
Preserved brain samples dating back to early 17th-century Milan have tested positive for cocaine, a team of Italian researchers has found, but it's not immediately clear how it got into their systems.
Many of the exhibits at the Ontario Science Centre that delighted visitors until this summer are now wrapped in plastic as the facility prepares to move them into storage.
A “mega den” of hundreds of rattlesnakes in Colorado is getting even bigger now that late summer is here and babies are being born.
A court in Thailand on Thursday found Daniel Sancho Bronchalo, a member of a famous Spanish acting family, guilty of premeditated murder and sentenced him to life in prison, in a lurid case that involved the victim being dismembered.
Rapper-turned-actor Chris 'Ludacris' Bridges sparked concern from some social media followers when he knelt on an Alaska glacier, dipped an empty water bottle into a blue, pristine pool of water and drank it.
For 50 years, 10 signed lithographs by Spanish surrealist Salvador Dalí were gathering dust at a basement in London. The rare artwork could soon find another home with an auction set for Sept. 30 at Hansons Richmond.
Nvidia shares pared some losses in premarket trading on Thursday, shaking off an earlier decline as investors stayed confident about the chip giant's growth prospects despite a forecast that fell short of lofty expectations.
A Brazilian Supreme Court justice on Wednesday threatened to shut down the local operations of X, formerly Twitter, unless its billionaire owner Elon Musk names an in-country legal representative within 24 hours.
Cannabis retailer Tokyo Smoke says it will be shuttering 29 of its stores as it seeks creditor protection.
Porto takes pride in its beaches, old churches covered in blue-and-white tiles and its famous port wine named after the city in northern Portugal.
Financial planning experts say understanding how deductions are calculated on a paycheque is vital for employees budgeting their money, especially those just entering the workforce or new to Canada.
Longtime celebrity watchers may not have been shocked when Jennifer Lopez filed for divorce from Ben Affleck, but what was surprising was that Lopez's divorce petition did not include any mention of a prenuptial agreement.
Nova Scotia Olympian Ellie Black been recognized for her sportsmanship at the 2024 Olympics in Paris.
Plenty of tennis players at the U.S. Open agree: Don't sleep on the benefits of a good nap, especially ahead of a night match.
Just weeks after hosting the Olympics, the summer of sports in Paris begins its final chapter Wednesday with the opening ceremony of the Paralympic Games.
Unless policies or technologies change, the cost of electric vehicles (EVs) needs to decrease by 31 per cent if Canada to wants to reach its sales target of 60 per cent EVs by 2030, according to the Parliamentary Budget Officer.
A 70-year-old from Ottawa is facing charges after clocking 160 km/h on Highway 417 to "get away from a bad driver" Wednesday afternoon, according to the Ontario Provincial Police (OPP).
Jaguar is telling owners of about 3,000 electric SUVs to park them outdoors and away from structures due to the risk of battery fires.
Alan Dougherty, co-owner of Estevan's Orpheum Theatre believes the historic theatre’s future is up in the air following recent flooding.
A piece of Manitoba history is up for sale.
A man who says he was attacked by a bear on a popular Halifax-area trail says he’s lucky to be alive after the unusual and terrifying incident.
The owner of Inspire Studio in Minnedosa is dealing with a bit of a head-scratcher, as the statue outside her business has been vandalized three times, the most recent incident happening this past weekend.
Forty restaurants in 60 days seems like a tall task, but it was a challenge Moncton foodie Jason Gallant took head on to find the best lobster rolls and fried clams in southern New Brunswick.
A double dose of Manitoba talent will storm the runways of Paris Fashion Week, wearing distinctly homegrown designs.
It's been a relationship forged in bronze.
The Hub City Radio Control Club invited the general public out to watch their RC plane demonstrations, Dozens of pilots and onlookers gathered on the tarmac to watch the planes in action.
While the festivities will look a little different this year, thousands are expected to show off their bright rainbow colours in downtown Ottawa on Sunday to celebrate the Capital's LGBTQ+ community.
Police in Vancouver are investigating a homicide in the city's Gastown neighbourhood.
A pitch to B.C. artists to create a poster to represent Vancouver as the host city for the 2026 FIFA World Cup is facing criticism as an “unethical” request.
Star defensive lineman Mathieu Betts is heading back to the struggling B.C. Lions.
Ontario’s new minister of education will hold her first news conference since taking over the portfolio earlier this month.
Durham police say a six-month long multi-jurisdictional firearms investigation has led to the arrest of 32 people, resulting in 184 charges being laid and the seizure of 16 weapons.
Police say a man wanted for first-degree murder in the death of a Toronto-area woman has fled Canada.
Residents reduced their water use again on Wednesday, the city's website shows, but it's still not at the target officials say will prevent critical issues with Calgary's water supply.
Thousands of Calgary students are headed back to school on Thursday for the first day of lessons, which could look a little different this year.
The Alberta government is expected to share the province's 2024-25 first quarter fiscal update on Thursday.
It will be at least October before passengers are riding the Trillium Line, as OC Transpo and its partner continue to identify "some gaps and some issues" during testing on Ottawa's new north-south light-rail transit line.
Ottawa's ByWard Market now has a new Metro store, employing 125 people and offering grocery products for the community, according to the store.
A 70-year-old from Ottawa is facing charges after clocking 160 km/h on Highway 417 to "get away from a bad driver" Wednesday afternoon, according to the Ontario Provincial Police (OPP).
Montreal's Concordia University is reporting a nearly 30 per cent drop in new registrations of out-of-province students following a tuition hike announced last year by the Quebec government.
Homeowners in Quebec may soon have to pay more in notary fees due to a reform to the province's Notarial Act.
A new report from a consumer protection agency in Quebec suggests Hydro rates could more than double in the next decade as the province continues its energy transition to decarbonize. Premier Francois Legault says that will not happen.
The Alberta government is expected to share the province's 2024-25 first quarter fiscal update on Thursday.
Multiple sources have confirmed to CTV News Edmonton the people involved in the deadly stabbing at the Edmonton Corn Maze have a connection to the Alberta Hospital.
It's back to school week for many students across the province, including Edmonton's largest school division.
Two adults have been charged after allegedly providing false information to Halifax police about a homicide case.
Canadian weekly earnings remained consistent with months prior, but still four per cent higher than the same time last year, Statistics Canada reported Thursday.
The Nova Scotia government is working with Halifax Regional Municipality (HRM), the Halifax Regional Centre for Education and the Conseil scolaire acadien provincial to expand the Student Transit Pass Pilot Program.
A doctor who was found guilty of sexually assaulting some of his patients over several years was sentenced in a Manitoba court on Thursday.
Manitoba will announce a new initiative to combat the growing problem of retail theft and violent crime in the province.
Manitoba RCMP is investigating after a man was found dead inside a burning pickup truck over the weekend.
Alan Dougherty, co-owner of Estevan's Orpheum Theatre believes the historic theatre’s future is up in the air following recent flooding.
Saskatchewan's Conflict of Interest Commissioner (COIC) is investigating two government MLAs – Minister of Education Jeremy Cockrill and Gary Grewal.
It was the kryptonite of many Saskatchewan drivers taking their road test: One-way streets. However, the component has not been mandatory since November of 2017 – leaving mixed feelings with many.
Tractors made their way through downtown Kitchener on Wednesday, a slow-moving protest of Waterloo Region’s handling of the Wilmot land acquisition and assembly process.
A cinema in Listowel has closed after a collision yesterday afternoon.
Convenience stores across the province can sell beer, cider, wine and other alcoholic drinks starting on Sept. 5.
The Saskatchewan Serious Incident Response Team (SIRT) is investigating after the body of an 18-year-old man was pulled from a sewage lagoon near Langham.
A peaceful alpaca farm turned into a horrific scene after a violent dog attack left three animals dead and two injured on Monday evening.
School divisions in Saskatchewan say they will be enforcing the province's pronoun law as children head back to class next week.
Canadian weekly earnings remained consistent with months prior, but still four per cent higher than the same time last year, Statistics Canada reported Thursday.
Ontario's Special Investigations Unit has cleared Sudbury police of wrongdoing in an arrest last February that left a drunk man with three broken ribs.
One person is in hospital with serious injuries in Sudbury after rocks thrown onto Maley Drive on Wednesday caused a motorcycle to slide into a ditch.
Police in Goderich have laid several charges after using a search warrant as part of an illegal drug investigation. On Thursday, police used the warrant and seized drugs, cash, weapons and other offence-related items.
Back-to-school 2024 is a stressful time for parents facing economic and inflationary pressures and the rising cost of school supplies forces some to make tough choices.
The province’s Special Investigations Unit (SIU) is appealing for witnesses to come forward who may have seen a collision take place in Sarnia between a police vehicle and a civilian vehicle.
The defence lawyer for an Aurora man convicted of killing his wife following her disappearance four years ago conceded for the first time that his client may have played a role in her death.
Provincial police want to make residents aware of a growing trend of thefts targeting shoppers.
A long-time Midland resident who has been homeless for over two decades highlights the town's struggles with inadequate shelter and public perception, as local leaders push for more comprehensive solutions.
A demoted Windsor police officer has filed a complaint with the Human Rights Tribunal.
The Windsor Police Service is reporting a collision at the intersection of Howard Avenue at Tecumseh Road East.
The City of Windsor and the Ontario government continue to tackle the growing homeless population.
The political landscape in British Columbia has shifted with John Rustad's Conservatives now carrying the centre-right banner heading into a fall election campaign.
Police in Vancouver are investigating a homicide in the city's Gastown neighbourhood.
Star defensive lineman Mathieu Betts is heading back to the struggling B.C. Lions.
The driver of a semi truck and trailer that plunged off of a bridge in the B.C. Interior Saturday morning has not been located, according to police.
The emergency department at Nicola Valley Hospital and Health Centre in Merritt is once again closed due to limited physician availability.
A 33-year-old man is facing multiple charges for allegedly setting several fires in Vernon on Monday.
Medicine Hat's mayor is thankful that a judicial review has restored a number of her duties as well as her salary, but one of her councillors is seeking further investigation.
After well over a century of prohibition, people can finally raise a glass of cheer in a Cardston, Alta., restaurant.
It's been just over two months since a siphon burst in Montana led to the Milk River drying up.
The driver of a passenger vehicle was killed early this morning in a collision with a commercial motor vehicle on Highway 17 near Dryden.
In consultation with the Algoma Public Health, the City of Elliot Lake has issued a boil water advisory for parts of the city for any activity where water may be ingested.
Environment Canada estimates up to 100 millimetres of rain fell very quickly in parts of the region Tuesday afternoon.
The federal government has temporarily paused parts of the newly reinstated commercial northern cod fishery off the east coast of Newfoundland as landings approach the seasonal limit.
The final edition of The Telegram newspaper’s daily print hit the stands in St. John's, N.L., on Saturday, marking the end of a 145-year run and a move to weekly print version with daily stories online.
A Newfoundland and Labrador judge has dismissed an assault charge against an RCMP officer accused of using excessive force against a man whose volatile behaviour grounded an international flight last year.
The Shopping Trends team is independent of the journalists at CTV News. We may earn a commission when you use our links to shop. Read about us.
