Chipmaker Nvidia Shares Slump in After-Hours Trading Despite Solid Earnings Report

Chipmaker Nvidia’s latest quarterly earnings report failed to impress investors, even as the tech titan topped Wall Street estimates and extended its streak of blockbuster growth. After Wall Street’s closing bell on Aug. 28, the chip juggernaut reported that revenues rose $30 billion, rocketing 122 percent annually during the quarter after three consecutive periods of year-over-year growth that surpassed 200 percent. This was also up 15 percent from the previous quarter. Revenues in its data center division spiked 154 percent year-over-year to $26.3 billion, accounting for 88 percent of total sales. Nvidia, which has been at the center of the artificial intelligence craze over the past year, noted that nearly $4 billion in revenues originated from the firm’s networking products. Gaming revenue also increased 16 percent from a year ago to $2.9 billion. It provides chips for Nintendo’s video game consoles....