Nvidia is the company powering the worldwide AI boom, and they just proved it again. In their recent released financial report, the numbers are massive. However, even though they broke records and made more money than anyone epected, their stock price actually went down.
The Massive Numbers
- Huge Quarterly Earnings:
In ust the last three months, Nvidia made $68.1 billion. That is a 73% jump compared to the same time last year
- A Record-Breaking Year:
For the entire year, they brought in $215.9 billion, which is 65% more than the year before.
The Secret to Their Success: Giant Computer Brain
Almost all of Nvidia's money is coming from one place: their data center business. This segment alone brought in $62.3 billion in the last quater, a 75% increase from last year.
Why Did the Stock Drop?
One may ask why did the stock drop by 5.46% to close at $184.89? it comes down to human nature and stock market habits. Everyone already knew Nvidia was going to have a great quarter. In fact, investors epected the numbers to be so perfect that when the news finally came out, there were no huge surprises left.
Because the stock price had already gone up so much before the announcement, many people decided to sell their shares right after the news to lock in their profits. This show that Nvidia is taking a quick breather.
