Nvidia's stock dropped despite strong earnings and future guidance. Picture Getty
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The ASX is expected to fall when the market opens on Thursday as Nvidia’s stock dropped after announcing its Q2 revenue post-market.
At 8am AEST, the SPI ASX200 futures contract was pointing down by 0.3%.
Earlier, the S&P 500 fell by 0.6%, the blue chips Dow Jones was down 0.39%, and the tech heavy Nasdaq slipped by 1.12%.
In arguably the season’s most eagerly awaited report, Nvidia Corp tumbled by 7% despite releasing earnings that surpassed Wall Street expectations, both for the past quarter and for future guidance.
For Q2, Nvidia’s revenue reached US$30.4 billion, a 125% increase from the previous year and US$700 million above analysts’ forecasts.
Nvidia’s net income for Q2 was US$16.6 billion, marking a 168% increase from last year, and adjusted earnings per share were 68 cents, which was 4 cents more than anticipated.
Looking ahead, Nvidia’s guidance for Q3 revenue is US$32.5 billion, an 80% rise from the previous year and US$700 million above the consensus estimate – which seem to have disappointed investors who expected more.
Also Nvidia mentioned that it managed to ship samples of its new Blackwell chips during the quarter and expects significant revenue from these chips in Q4.
“Nvidia’s results and outlook confirm there will likely be another AI investment wave as the big technology companies will invest heavily in the new Blackwell chips,” said Peter Garnry at Saxo.
“These chips are more energy efficient and have significantly more compute power for both training and inference.
“Another takeaway is that the competition is not even close to taking market share from Nvidia, and thus the investment case still looks solid.”
To other US stock news, SuperMicro Computer dropped over 19% after announcing it would postpone filing its annual report for the fiscal year that ended on June 30.
Abercrombie & Fitch and Foot Locker both saw their stocks drop by double digits. In its announcement, Abercrombie’s CEO Fran Horowitz cited an “increasingly uncertain environment” for the retail sector.
And, Salesforce lifted by over 3% in after-hours trading following the company’s announcement of earnings and revenue that exceeded Wall Street’s expectations.
In the commodities market, oil prices fell by over 1% following a smaller-than-expected reduction in US crude inventories.
Back home, earnings season continues with Qantas, Mineral Resources, and Wesfarmers among the companies set to release their results today.
Meanwhile, Pavel Durov, CEO of the popular messaging app Telegram, has now been charged in France for his alleged involvement in the spread of child sexual images and drug trafficking on the app.
French prosecutors accuse Durov of not cooperating with authorities, including refusing to assist with legal wiretaps and enabling organised crime.
He was detained at an airport near Paris a few days ago, and is now required to pay €5 million bail and stay in France.
Paris prosecutors criticised Telegram for its lack of response to legal requests, which led to the investigation into Durov and other executives.
Telegram has denied the accusations, stating that Durov has “nothing to hide” and that the company complies with European laws.
Gold price fell by 0.7% to US$2,506.87 an ounce.
Oil prices dropped by over 1%, with Brent crude now trading at US$78.65 a barrel.
The benchmark 10-year US Treasury yield traded flat at 3.84%.
The Aussie dollar slipped by 0.1% to US67.89 cents.
Bitcoin meanwhile dropped slightly by 0.2% in the last 24 hours to US$58,940 and Ethereum was down 1% to US$2,521.
MedAdvisor (ASX:MDR)
MedAdvisor has announced strong revenue growth and its first-ever profit for the year ending June 30. The company saw success in the US, where revenue reached nearly $100 million due to expanded vaccine and and the successful THRiV platform, a digital health tool designed to improve patient engagement and adherence to medication. Looking ahead, MedAdvisor aims for a revenue growth of 20-25% annually, targeting around $250 million in revenue and over 20% EBITDA margins by FY28.
Global Uranium and Enrichment (ASX:GUE)
Recent drilling at the Maybell Uranium Project in Colorado has revealed promising results. The first two drill holes have confirmed significant high-grade uranium mineralisation, with notable intersections including 17 metres at 0.166% U3O8 and 9.9 metres at 0.067% U3O8 from shallow targets. Additionally, the deeper Lower Browns Park Formation showed thick zones of mineralisation. Drilling is ongoing and will continue until mid-September, with further results anticipated. Maybell, a well-known uranium district, previously produced 5.3 million pounds of U3O8.
Catalyst Metals (ASX:CYL)
The gold explorer has reported its first profit after a three-year journey, driven by operational improvements and acquisitions. In the past year, the company produced 110,000 ounces of gold and generated revenue of $317 million. EBITDA reached $63 million, and profit after tax was $37 million, excluding impairments. Catalyst has a strong balance sheet with $46 million in liquidity, and is focused on expanding its gold production, aiming to increase output to 200,000 ounces annually through new projects.
Pursuit Minerals (ASX:PUR)
Pursuit has reported promising results from its drilling at the Rio Grande Sur Project. Drill hole 2 (DDH-2) has intersected high-grade lithium brine at shallow depths of around 161 metres, with initial assays showing lithium concentrations between 498 mg/L and 511 mg/L. The drilling, which reached a depth of 500 metres, continues to reveal additional lithium-bearing brines, with further assay results expected soon. These findings build on earlier high-grade results which the company says support the potential for significant resource growth at the project.
Indiana Resources (ASX:IDA)
Indiana has announced promising results from its recent drilling at the Minos Prospect in South Australia. The latest assays show high-grade gold intersections, including 1 metre at 25.9 g/t Au and 3 metres at 10.3 g/t Au. The drilling has confirmed gold mineralisation across a 600-metre strike and identified a new parallel zone of mineralisation. The prospect remains open for expansion, with further drilling planned for September to explore these high-grade zones further.
At Stockhead we tell it like it is. While Pursuit Minerals and Indiana Resources are Stockhead advertisers, they did not sponsor this article.
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