The shares of AI giant Nvidia Corp. faltered on Thursday even after the company reported blockbuster fourth quarter results, which largely surpassed expectations of analysts'. The shares opened in the red and fell as much as over 5% within the first hour of trade.
The chipmaker saw a record quarterly revenue of $68.1 billion, up 20% from Q3 and up 73% from a year ago. Data Centre revenue went up 75% year-on-year and 22% quarter-on-quarter to $62.3 billion.
Moreover, the full-year revenue was up 65% year-on-year to $215.9, according to the company's results that came out on Wednesday post market hours.
The tech titan's results exceeded analysts' expectations. Bloomberg analysts' had expected Nvidia to clock a 67.58% revenue growth to $66 billion from $39.3 billion in the year-ago period.
ALSO READ: AI Impact On Wall Street: Five Key Trends Indians Investing In US Stock Market Should Watch Out
Similarly, the company's data-centre revenue was expected to see an almost 70% to $60.3 billion from $35.5 billion in the corresponding quarter of last fiscal year.
For its outlook for FY27, Nvidia said first-quarter revenue will be about $78 billion.
Despite this, the results failed to soothe investor worries around AI trade and massive spending spree by tech companies into artificial intelligence.
Analysts at Hargreaves Lansdown noted that shareholders still question “whether the current AI spending wave can sustain growth beyond the next few years, and whether Nvidia will remain as dominant as AI shifts from training models to running everyday tasks," reported news agency Bloomberg.
The slump in its share price has dragged the tech-heavy Nasdaq index over 2%. As of 10:50 a.m. Est the index traded 1.52% or 349 points lower at 22,808.87.
Wider index S&P 500 also slipped over 1% within the first hour of trade and was trading 0.77% or 54.52 points lower at 6,889.55.
The Dow Jones Industrial Average on the other hand opened higher and continued to trade 0.15% or 75.67 points higher at 49,539.17.
ALSO READ: Citrini Founder Shocked His AI Prediction Spurred Stocks Selloff
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
