5 Red Flags for Nvidia's Future

Nvidia's (NASDAQ: NVDA) stock slipped 5% during after-hours trading on Aug. 24 following the release of its second-quarter report. The chipmaker's revenue rose 3% year-over-year to $6.7 billion, which matched analysts' expectations. However, its adjusted net income declined 51% to $1.3 billion, or $0.51 per share, which missed the consensus forecast by a penny. Those headline numbers were mixed, but a deeper dive into Nvidia's report reveals five bright red flags for its future.

During the second quarter, Nvidia generated 30% of its revenue from its gaming chips and 57% of its revenue from its data center chips. Both segments had flourished during the pandemic as people stayed home and played more video games, mined more cryptocurrencies with gaming GPUs, and accessed more cloud-based services from data centers.

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Source Fool.com