Nvidia Results Weigh on Global Tech Stocks and Markets: Nvidia announced its second-quarter results, which were aligned with analysts’ estimates.
The company reported $46.74 billion in revenue, a 56% year-over-year increase compared to the consensus estimate of $46.23 billion.
However, the results disappointed investors who had expected stronger performance from the world’s leading AI chipmaker.
The company’s stock was down 5% in after-hours trading before paring some losses later.
Data center revenue, Nvidia’s primary business segment, came in at $41.1 billion, up 56%,
but slightly below expectations of $41.29 billion.
Gaming revenue exceeded estimates at $4.3 billion (+49%), while professional visualization revenue rose to $601 million (+32%),
beating projections of $532 million. Adjusted gross margin climbed to 72.7%.
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Tepid Forecast and Slowing AI Momentum
The company projected Q3 fiscal sales of around $54 billion through October,
matching Wall Street’s average estimate but falling short of some analysts’ forecasts of $60 billion.
Nvidia noted that these projections exclude data center revenue from China.
This performance has raised concerns about a slowdown in the massive investment boom in artificial intelligence,
especially after the company added roughly $2 trillion to its market value since April amid a historic rally.
Kyle Rodda, Senior Market Analyst at Capital.com, said:
“The new information reinforces worries about slowing AI investment and weaker future growth.
With shares trading near record highs, these negative details have weighed on market sentiment.”
Pressure on Asian Markets and Warnings from China
The announcement triggered a selloff in Asian tech stocks: Nvidia shares fell 3% in after-hours trading,
Nasdaq 100 futures slid 0.4%, and Meituan stock dropped 9.7% in Hong Kong following a warning of steep losses,
dragging the MSCI Asia Tech Index down 0.4%.
Alibaba Group shares also fell 4.2% ahead of Friday’s earnings release,
while U.S. markets retreated overnight after the S&P 500 hit a record high.
In China, Meituan warned of significant losses this quarter amid intense price competition with Alibaba and JD.com,
threatening its dominance in the local market.
The company cited “irrational competition” as the main driver behind a 97% plunge in net income in Q2.
Marie Nicola from Bloomberg MLIV commented:
“The 97% drop in Meituan’s profits will keep investors on edge as they await Alibaba’s results.
In the long term, Beijing’s AI support remains positive, but valuations appear overstretched.”
Financial Markets, Bonds, and Oil Under Pressure
Elsewhere, the Dollar Spot Index fell for a third consecutive day. U.S. short-term Treasuries declined after two days of gains,
increasing the two-year yield to 3.62%. The 30-year bond yield stayed flat after former U.S. President Donald Trump
announced plans to dismiss Federal Reserve Governor Lisa Cook over allegations of mortgage document fraud.
Kevin Hassett, Trump’s senior economic advisor, said Cook should take a leave of absence until her legal situation is resolved.
Meanwhile, Mexico’s government plans new tariffs on Chinese imports in its 2026 budget.
Indian markets brace for the impact of Trump’s latest tariffs on Indian goods, which took effect after Wednesday’s holiday.
Oil prices fell 0.5% as markets shrugged off U.S. pressure on India to halt purchases of Russian crude.
Nvidia Results Weigh on Global Tech Stocks and Markets