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Nvidia brings out the crowd but not the fireworks

The wow factor might be fading, even if the underlying business is performing

Nvidia earnings are officially a crossover spectacle. Market strategists say that the quarterly event for the semiconductor darling now rivals the US unemployment report day as a bellwether for broader economic health and animal spirits. On cue, an Nvidia earnings watch party for Thursday afternoon at a Manhattan sports bar was organised and advertised on social media.

The group should not have been disappointed by the actual results. Overall, Nvidia second-quarter revenue of $30bn was up 122 per cent, year over year. And within its core data centre division, revenue was up 154 per cent. The latter growth rate had moderated from 426 per cent in the previous quarter.

Nvidia founder and chief executive Jensen Huang was as much a cheerleader as ever, saying the AI revolution remained in its early innings and that shipments of Nvidia’s next generation chip, Blackwell, would increase in the coming months after supply chain problems.

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