Nvidia shares fall despite record profits

Revenue continues to grow rapidly, growing 122% year-on-year in the quarter, following three consecutive year-on-year increases of over 200%.

The company’s net income rose to $16.6 billion in the quarter from $6.18 billion a year earlier.

Nvidia is the biggest beneficiary of the ongoing AI boom and its market capitalization recently exceeded the $3 trillion mark

This year alone, the company’s shares have skyrocketed 150%, with a 3,000% increase over the past five years.

Nevertheless, according to Reuters, a decline of up to 6.8 percent was recorded following the results.

Fears of a design-related delay in the launch of the upcoming Nvidia Blackwell chips are said to have contributed to the price fluctuations. However, shares held up because the company’s Hopper chips were seen as a stopgap solution.

Nvidia announced yesterday that it had shipped Blackwell pilot chips to customers and partners and expected to increase chip sales by the end of the year.

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