Nvidia beats expectations with record Q2 profit, but shares fall

But amid high expectations ahead of Nvidia’s earnings, the company’s shares fell about 6 percent in after-hours trading on Wednesday.

According to Bloomberg estimates, Nvidia posted revenue of $30 billion in the three months ended July 28, up 122 percent from the same period last year and well above the $28.9 billion expected by analysts. The results were driven by sales of Nvidia’s Hopper GPU, the company said. Strong demand for Nvidia’s chips boosted the bottom line, with the chipmaker posting a gross profit margin of 75.1 percent and adjusted earnings per share of 68 cents.

CFO Colette Kress said in a prepared statement that the company had “made a change to the Blackwell GPU mask to improve production yield” and announced that the company would ramp up production in the fourth quarter of the year.

It is unclear whether the change is related to design flaws reported on the tech news site The information earlier this month, which the publication said would delay deliveries by three months or more. The timeframe is within the company’s previous commitment to deliver Blackwell in the second half of the year, albeit at the back end of the date range.

“We expect Blackwell sales to be multi-billion dollars in the fourth quarter. Hopper demand is strong and shipments are expected to increase in the second half of fiscal 2025,” Kress said.

Nvidia is one of the biggest beneficiaries of the AI ​​hype, as Internet companies like GoogleMeta and Amazon Spend tens of billions of dollars on infrastructure to deliver AI services.

While Nvidia faces competition from another chipmaker AMD and startups like Cerebras and Groq, the company currently controls 90% of the AI ​​chip market, according to analysts. This dominance has led to a massive rally in the company’s shares, which have more than doubled this year and now account for nearly 7% of the S&P 500.