Nvidia Corp. on Wednesday forecast a third-quarter gross profit margin that would miss market estimates and revenue that was broadly in line with expectations, failing to impress investors who had sent the company’s shares soaring by betting billions on the future of artificial intelligence.
Shares of the Santa Clara, California-based company fell 4 percent in extended trading.
Nvidia stock has risen more than 150 percent so far this year, but was down 2 percent at the close of regular trading on Wednesday.
Nvidia expects to achieve an adjusted gross profit margin of 75 percent, plus or minus 50 basis points, in the third quarter, and analysts expected the gross profit margin to be 75.5 percent on average, according to data from the London Stock Exchange Group.
The company's gross profit margin was 75.7 percent in the second quarter, compared to an average estimate of 75.8 percent.
Investors had high expectations for the chipmaker, after its stock rose more than sevenfold over the past two years, making it one of the biggest beneficiaries of the rise in AI-related stocks.
Nvidia expects to post revenue of $32.5 billion, up or down 2 percent, in the third quarter, compared with analysts' average estimate of $31.77 billion, data from the London Stock Exchange Group showed.
Second-quarter revenue was $30.04 billion, beating estimates of $28.70 billion.
