Tech got hit in late trading as Nvidia Corp.’s sales forecast disappointed some hoping for more from the chipmaker at the forefront of the artificial-intelligence revolution that has powered stocks.
A $286 billion exchange-traded fund tracking the Nasdaq 100 (QQQ) lost 1% after the close of regular trading. Nvidia sank 7% after saying third-quarter revenue will be about $32.5 billion.
While analysts had predicted $31.9 billion on average, estimates ranged as high as $37.9 billion. The company also signaled that it was working through production snags with its highly anticipated new Blackwell chip.
“Here’s the issue: the size of the beat this time was much smaller than we’ve been seeing,” said Ryan Detrick at Carson Group.
“Even future guidance was raised, but again not by the tune from previous quarters. This great company is still growing revenue at 122%, but it appears the bar was just set a tad too high.”
