Nvidia shares fall despite their revenue doubling in the space of 3 months

30.08.2024 01:01

TheSun.co.uk

MOST companies churning out £24billion in sales in three months would be cheered — but not Nvidia, where sky-high expectations are now costing the tech business.

The US chip maker has ballooned so rapidly to its $3trillion valuation that some analysts claim it has as much of an impact on global stock markets as the US Federal Reserve’s interest rate cut moves and big established economic releases.

APNvidia chief executive Jensen Huang has become something of a rock star for the tech industry[/caption]

Late on Wednesday night, Nvidia reported it had grown sales by 122 per cent to $32.5 billion (£24billion), which beat the average analyst forecast of $31billion (£23.5billion).

But it was below the wild hopes it would churn out even more, causing its share to instantly wobble.

Stock in Nvidia, whose chief executive Jensen Huang has become something of a rock star for the tech industry, fell by nearly three per cent yesterday, wiping around £100billion off the company’s valuation.

Analyst Stephen Innes said: “Despite these eye-popping figures, the stock still took a hit. In today’s market, even record-breaking isn’t enough to satisfy the insatiable appetite for ever-bigger numbers

When you’re Nvidia, surpassing expectations is just the first obstacle. The real challenge is vaulting over the sky-high bar set by investors, who, let’s face it, aren’t always the most stable bunch.”

Industry experts said the level of disappointment was so deep because investors had become used to its runaway growth and it was well below the 262 per cent sales growth in the previous quarter.

Lew hos formula

GettyF1 driver Lewis Hamilton’s Almave tequila-style tipple comes without any alcohol[/caption]

LEWIS Hamilton has become the latest celebrity to find success in the spirits market — after booze giant Pernod Ricard announced it was taking a stake in his drink.

The seven-time Formula One world champion has joined the growing ranks of stars to hit the bottle.

But, unlike George Clooney, Ryan Reynolds and Jay Z, his Almave tequila-style tipple comes without any alcohol.

Pernod Ricard, which is best known for making Absolut Vodka, Malibu and Beefeater Gin, acquired a minority stake in Almave which it called a “true gem”.

Hamilton said the investment allows “us to help take Almave to even more people around the world”.

Uber ties to Wayve

UBER is investing in driverless car firm Wayve in a confidence boost for the British company.

Wayve said the tie-up with the ride-hailing app would promote its artificial intelligence tech to car manufacturers.

Uber said Wayve would help it “work towards a world where modern vehicles are shared, electric and autonomous.”

The firm was started in 2017 by two Cambridge University students. In May, it raised more than $1billion from investors.

Olympics pumps up bike sale

GettyHalfords bike sales have been boosted by the Paris Olympics[/caption]

THE Olympics brought a much needed boost for Halfords as bike sales shifted up a gear since the start of the Games.

The UK’s biggest bike retailer said during the Paris cycling events there were more than half a million visits to its website — a 12 per cent rise.

Searches for BMX jumped 27 per cent after team GB’s Kieran Reilly won a silver in freestyle and Beth Shriever qualified to the sport’s final.

Likewise, Tom Pidcock’s gold in cross-country mountain biking pushed up demand for the bikes by 8 per cent.

Velodrome events also inspired a 17 per cent surge in road bike sales. Katie Begley, Halfords’ head of cycling, said: “It’s clear the increase was down to the Games.”

The retailer was in need of a cycle surge as, in June, it reported significantly worse than expected sales due to higher prices and the cost of living crisis.

Lab bid to get firms onside

CHANCELLOR Rachel Reeves has revived her charm offensive in her first meeting held with all of the UK’s business lobby groups.

There has been growing nervousness among companies on plans to give employees “the right to switch off” and a wave of public worker pay rises. But she told representatives they would be consulted on Labour’s “Plan to Make Work Pay”.

Ms Reeves said yesterday she will “lead the most pro-growth, pro-business Treasury in our history — with a laser focus on making working people better off”.

Sainsbury’s jobs joy

SAINSBURY’S is creating 1,000 jobs by opening 10 new stores in former Homebase shops.

Britain’s second biggest supermarket is spending around £130million on leases and fitting out them out.

Homebase’s owner, Hilco, has made two bids to offload the chain, which has been hit by a slowdown in DIY spend, with The Range and B&M Bargains tipped as suitors

Sainbury’s boss Simon Roberts said: “Our food business continues to go from strength to strength. We want to build on this momentum.”

Drax is burnt

POWER firm Drax is paying a £25million penalty after a probe found it did not have enough checks in place about where its wood pellets were coming from.

Drax gets billions of pounds in subsidies because it claims the biomass is more environmentally-friendly than coal. However campaigners argue it is unclear if the Canadian imports are from sawmills or rare forest wood.

Regulator Ofgem said Drax was not able to provide “accurate and robust” data about the type of wood burnt.

A RECORD 4.4 million pet owners took out insurance to protect their animals last year, according to the Association of British Insurers.

The number is 1.7 million higher than a decade ago as more households bought pets during the pandemic.