In recent market movements, U.S. stock index futures have shown little change as investors digest Nvidia’s latest earnings report. While Nvidia posted strong earnings, its fourth-quarter revenue forecast just barely surpassed estimates, leading to a dip in its stock price.
Nvidia’s Performance
Nvidia’s third-quarter earnings report revealed earnings per share (EPS) of $0.81 on revenue of $35.1 billion, surpassing expectations of $0.75 EPS and $33.09 billion in revenue. However, Nvidia’s forecast for fourth-quarter revenue of $37.5 billion, plus or minus 2%, was just above estimates of $37.09 billion. This guidance fell short of some traders’ expectations, especially given Nvidia’s impressive performance throughout the year.
Market Reaction
Following the earnings report, Nvidia’s shares fell more than 1% in aftermarket trade, trimming some losses after an initial drop of as much as 2%. The forecast indicated a slower pace of revenue growth compared to previous quarters, which contributed to the stock’s decline. Nvidia, which recently overtook Apple to become the world’s most valuable listed company, also flagged supply constraints, particularly for its upcoming Blackwell line of next-generation AI chips.
Broader Market Impact
Other major chipmaking stocks were mostly muted in evening deals as investors digested Nvidia’s mixed outlook. TSMC fell 0.2%, while Broadcom and Nvidia rival AMD saw slight gains. Wall Street indexes marked a muted close amid caution before Nvidia’s earnings and ongoing geopolitical tensions.
Looking Ahead
Investors are now awaiting a slew of U.S. economic readings, including weekly jobless claims and home sales data, as well as purchasing managers index data for November. Several Federal Reserve officials are also scheduled to speak in the coming days, adding to market uncertainty.
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