Nvidia's Strong Earnings Fall Short of Moving the Stock Due to Supply Constraints
Despite Nvidia reporting record second-quarter earnings that beat Wall Street estimates, Seaport Research Partners analyst Jay Goldberg argues the results are not impressive enough from a market-moving perspective. The main issue is that the company has already sold out its chip supply for the year, limiting potential upside surprises and investor excitement. Goldberg maintains a 'sell' rating on Nvidia (NVDA), one of only a few analysts with such a stance. He highlights the constraint posed by reliance on Taiwan Semiconductor Manufacturing Company as well as growing competition from AMD's Instinct chips, Google’s TPU, and in-house AI chip efforts at OpenAI and Anthropic. However, he still expects Nvidia to retain its dominant market share. On the other hand, UBS analyst Tim Arcuri sees the results as a positive sign for future earnings growth into 2027 and beyond. While shares briefly erased an early after-hours dip following the report, it remains uncertain whether this pattern will continue.
Tickers: $NVDA
Topics: Analyst Rating Chip Supply Constraints Earnings Beat Nvidia