Fast Money Blog- 8/30/24

On Wednesday, August 28th, NVIDIA Corporation (NVDA) released its Q2 2025 earnings with record quarterly revenue of $30 billion, up 15% from Q1 and up 122% year-over-year.

Nvidia’s data center business continues to be the leading driver of its success, which shows that the demand for AI infrastructure is not slowing down. 

NVDA reported record Q2 Data Center revenue of $26.3 billion, up 16% from Q1 and up 154% from a year ago. Note that NVDA’s Data Center revenue represents 87% of its total revenue.

Second-quarter Gaming revenue was $2.9 billion, up 9% from last quarter and up 16% year-over-year.

Many top-tier companies have partnered with NVDA, including Microsoft Corporation (MSFT), Meta Platforms, Inc. (META), Alphabet Inc. (GOOG), Amazon.com, Inc. (AMZN).

So Tyrone, why is NVDA stock dropping?

Keep in mind that in this year alone, Nvidia’s shares have risen more than 150%, and more than 750% since the start of 2023. When you have spectacular stock performance based on growing revenue, Wall Street institutions tend to take profits on positive revenue reports.

Here’s my NVDA Outlook: I expect Q3 revenues to continue to excel and that the stock price will stay range bound between now and the late October/early November Q3 revenue release. 

I consider NVDA to be a spectacular long-term hold and a great short-term trade. 

Just a reminder: I expect daily volatility to slow down until we get past September 11th.

Tyrone Jackson, The Wealthy Investor