NVIDIA Posts Surprise Quarterly Results, Shares Fall After Hours
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- 2026-08-27 05:46:35
- Updated
- 2026-08-27 05:46:35
NVIDIA Corporation announced stronger-than-expected quarterly earnings after the market close on the 26th local time. However, its shares declined in after-hours trading.
That contrasted with Salesforce, which surged 12% in after-hours trading on the back of its own surprise results.
NVIDIA Corporation said it posted revenue of $96.22 billion and adjusted earnings per share of $2.22 in the second quarter of fiscal 2027, which ended on the 26th of last month.
According to CNBC, Wall Street analysts surveyed by LSEG had expected revenue of $92.17 billion and adjusted EPS of $2.10.
Despite the surprise results, NVIDIA Corporation shares, which closed regular trading down $3.39, or 1.59%, at $209.66, fell another $3.34, or 1.60%, to $206.32 in after-hours trading.
Although NVIDIA Corporation is a key beneficiary of the artificial intelligence boom, investors appear to believe that results at this level are not enough to justify the stock's steep rise so far.
Having led the market with a dramatic rally over the past three years, NVIDIA Corporation now faces a situation in which shares are unlikely to rise unless earnings far exceed market expectations, not merely beat them.
Some investors are also taking a cautious view of the third-quarter outlook and the production schedule for next-generation semiconductors.
Above all, concerns over rising memory prices also appear to be weighing on NVIDIA Corporation's stock.
Memory is a key component of NVIDIA Corporation's AI server chips, including NVIDIA Blackwell architecture and NVIDIA Vera Rubin platform. If memory prices rise, there are growing concerns that it will be difficult to defend the company's high gross margin, which is currently around 75%. NVIDIA Corporation is trying to pass on costs to major tech customers by raising server prices by more than 15%, but with custom chips from Advanced Micro Devices, Inc. (AMD) and Google Experience Center catching up to NVIDIA chips, doubts are increasing over whether it can protect its margins.
[email protected] Song Kyung-jae Reporter