Overview

• Shares logged four consecutive closes below the 50-day moving average and broke mid-August support, even as the S&P 500 hit a new high, signaling short-term weakness.
• Nvidia’s fiscal Q2 revenue rose 56% to $46.74 billion with data center sales at $41.1 billion and adjusted EPS of $1.05, and the company projected growth above 50% for the current quarter.
• CEO Jensen Huang estimates a $3 trillion to $4 trillion AI infrastructure opportunity over the next five years, outlining a path that could approach $1 trillion in annual revenue by 2030 if share is maintained.
• The company’s moat spans CUDA software and advanced networking; networking revenue nearly doubled to $7.3 billion and GPU market share was reported at about 94% in Q2.
• Headwinds include lost near-term China revenue from unsold H20 chips estimated at roughly an $8 billion opportunity, a market value near $4.1 trillion earlier this year, and intensifying competition from lower-cost and custom silicon.