Nvidia, the world’s most valuable semiconductor company, reported another impressive quarterly earnings beat, yet its shares slipped roughly 2% in pre-market trading Thursday. The decline reflects investor concerns over slowing growth in key segments and persistent geopolitical tensions.
The company projected third-quarter revenue of $54 billion, a figure that would typically excite markets. However, uncertainty surrounding Nvidia’s business in China—amid ongoing U.S.-China trade restrictions—cast a shadow over the outlook. Despite receiving limited licenses, Nvidia said its forecast assumes no shipments of its H20 AI chips to China.
CEO Jensen Huang remained optimistic, stating that the global surge in artificial intelligence investment is far from over. Still, the modest pullback in Nvidia’s stock had limited impact on the broader chip sector, and S&P 500 futures held steady following the index’s record close on Wednesday.