Nvidia shares dip as chipmaker’s earnings come in good — but not amazing

New York — 

After a stunning streak that saw Nvidia blow Wall Street’s projections out of the water quarter after quarter, the chipmaker on Wednesday reported revenue for the July quarter that was essentially in line with expectations. Investors aren’t loving it — the company’s shares dipped as much as 3.5% in after-hours trading immediately following the report.

Wednesday’s report marked the latest chance for Nvidia to provide a window into how its business has been affected by President Donald Trump’s shifting trade policies, as the American tech giant has become a bargaining chip in the US-China trade war. The company warned in May that it expected to take an $8 billion hit to revenue

Nvidia earned $46.7 billion in revenue for the quarter, up 56% from the same quarter in the prior year and just slightly ahead of the $46 billion analysts had expected. Net income reached $26.4 billion, up 59% year-over-year, and a slightly larger beat on the $24.7 billion Wall Street had projected. And once again, Nvidia was unable to sell its H20 chips to China, the market that last year made up 13% of its revenue.

Most executives would cheer year-over-year growth rates like these. But the results also mark a slowdown from the 122% year-over-year revenue growth and 168% year-over-year profit growth the company reported in the same period last year.