Shares in Nvidia (NVDA) fell 2% in pre-market trading on Thursday, after the chipmaker's second quarter data centre revenue came in just shy of expectations.
Nvidia beat estimates on the top and bottom lines in the second quarter, with revenue of $46.7bn (£34.62bn) compared to expectations of $46.2bn and adjusted earnings of $1.05 per share, which were also ahead of forecasts of $1.01.
However, data centre revenue of $41.1bn was just below estimates of $41.3bn, according to data from Bloomberg.
For the third quarter, Nvidia projected revenue of $54bn plus or minus 2%; expectations were for $53.4bn. The company said its projections didn't include sales of its H20 chips. The Trump administration recently reached a deal with the company, allowing it to sell the chip in China in exchange for 15% of that revenue going to the US government.
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Speaking to Yahoo Finance following the release of the results after the bell on Wednesday, Nvidia CEO Jensen Huang said that it's the president's “policy to have America win the AI race”.
Ben Barringer, head of technology research at Quilter Cheviot, said: “Nvidia’s results were straight down the middle, solid, but not the blockbuster beat some investors are used to. It’s beating sell-side consensus, but it’s bang in line with buy-side expectations.”
“While China represented around 13% of Nvidia’s revenue in 2024, many investors now treat it as an optional add-back rather than a core part of the forecast,” he said. “The broader AI story remains compelling. Hyperscaler CAPEX is expected to grow 50% this year and 15% next year, and we’re seeing growing momentum from sovereigns, enterprises, agentic AI, and physical AI applications like robotics and autonomous systems. These trends show Nvidia’s demand base is still expanding.”
Shares in CrowdStrike fell nearly 4% in pre-market trading on Thursday, after the cybersecurity company's third quarter guidance disappointed investors.
In results released on Wednesday, CrowdStrike said it expected current-quarter revenue to be between $1.21bn and $1.22bn, versus analysts' average estimate of $1.23bn, according to data compiled by LSEG.
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However, revenue for the second quarter of $1.17bn was ahead of the company's guidance of $1.14bn to $1.15bn and represented an increase of 21% year-on-year.
In addition, CrowdStrike also announced on Wednesday that it would acquire startup Onum to evolve its Falcon platform for security information and event management.
