Nvidia forecast its slowest revenue growth in seven quarters on Wednesday, failing to meet lofty expectations of some investors who have made it the world’s most valuable firm.
Shares of the Santa Clara, California-based company fell 5% after it posted results but quickly pared losses to trade down 1.5% after hours. During the regular session, they closed 0.8% lower.
Expectations ran high ahead of the results, with Nvidia shares up more than 20% over the last two months and hitting an intraday record high on Monday. The stock has nearly quadrupled so far this year and is up more than ninefold over the last two years. Nvidia is in the middle of launching its powerful Blackwell family of artificial intelligence chips, which will weigh on the company’s gross margins initially but improve over time.