Most reiterated their previous ratings but lowered price targets. About 70% of Nvidia’s second-quarter revenue was down to data center sales.Ī half dozen brokerages have weighed in on Nvidia’s results. CEO Jensen Huang said it will take time to sort out the supply chain challenges. Nvidia could have sold more but supplies of supporting chips were constrained. Data center sales hit a record level in the second quarter but were still short of projections. The big worry is the company’s data center business. The new model uses a small fraction of the electricity needed for crypto mining. They may get slower once Ethereum completes its transition to a proof-of-stake model rather than the proof-of-work model it and Bitcoin currently use. Sales of Nvidia’s graphics processors, which are heavily used in the crypto-mining business, also have been slow. Gaming chip sales were lower, as expected. Nvidia has forecast revenue of $5.9 billion, less than a consensus estimate of $6.9 billion. What had investors worried was the company’s outlook for the current quarter.

The company had warned earlier that revenue and profits would be lower for the quarter, so that was no surprise. At the opening bell Thursday, shares traded down by about 1%.

( NASDAQ: NVDA) reported second-quarter results late Wednesday, investors promptly took the stock to the woodshed, cutting as much as 6% from the share price in after-hours trading.

Nvda price after hours