Shares of chipmaker NVIDIA (NVDA) fell by 5.5% to $137.92 in the post-market on the NASDAQ stock exchange on November 20. The decline in quotations was observed after the company’s third-quarter results and forecasts for the current quarter were published. At the close of trading, the decline was reduced to 2.5%, and the share price recovered to $142.25, Reuters reports.
According to NVIDIA’s forecasts, its revenue growth in the current quarter will be the slowest in the last seven quarters. The company expects sales for the quarter to be about $37.5 billion, plus or minus 2%.
“Investors have become accustomed to this company’s tremendous success, but it’s getting harder and harder to do that,” said Ryan Patrick, chief market strategist at Carson Group.
According to him, it was still an excellent report, but it becomes much more difficult when the bar is so high.
The forecast for the current quarter implies an annual revenue growth of about 70% compared to the previous year, which is a slowdown compared to the annual revenue growth of 265% in the same period in 2023
The microchip maker’s revenue for the October 27, 2024, quarter increased by 94% to $35.082 billion.
Revenue growth has been consistently slowing down — in the previous three quarters, the company’s sales were down 122%, 262%, and 265%, respectively.
NVIDIA’s net profit for the last quarter increased by 109% to $19.3 billion. Adjusted earnings per share increased by 103% to $0.81, while analysts polled by LSEG expected $0.75 per share.
NVIDIA is currently ranked first in market value among all companies worldwide. The chipmaker’s shares have risen by more than 20% over the past two months, almost four times since the beginning of the year, and more than nine times over the past two years.
NVIDIA’s market value as of November 20 was $3.58 trillion. The stock’s historical high was $149.77, recorded on November 8.
