Nvidia Blackwell Holdup 📉

And, CrowdStrike reveals outage impact.

August 29, 2024

Today is Thursday, August 29, 2024.

The Early Bird Index today is 71.84.

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Nvidia Blackwell Holdup đź“‰

Semiconductor giant Nvidia (Nasdaq: NVDA) reported good financial earnings results on Wednesday, and yet the stock dropped 6.89% in after-hours trading.

Financials: Nvidia reported earnings of 68 cents per share in the past quarter and revenue of $30.04 billion; both were better than expected.

Details: The company reported record revenue and issued a $50 billion stock buyback to boost the stock price, yet some investors ran for the hills.

Powering the Story: Nvidia said production for Blackwell, its next-generation AI chip, won’t ramp up until the fourth quarter because of a design change. This delay means investors likely won’t see the sales results from Blackwell for some time.

Early Bird’s Nest Egg Gains: The delay could create a temporary gap in supply for customers waiting on large Blackwell orders.

  • There could be a short-term impact on Nvidia's 2025 financial results, depending on the length of the delay.

  • However, if the delay is only a few months, the impact may be minimal.

Final Thoughts: Demand for Nvidia's AI chips remains strong. The stock is up 160% this year.

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Notables

Notable Earnings Today: Ulta Beauty (Nasdaq: ULTA), Best Buy (NYSE: BBY), Dell (NYSE: DELL), Dollar General (NYSE: DG), Lululemon Athletica (Nasdaq: LULU), Ollie’s Bargain Outlet (Nasdaq: OLLI), Marvell Technology (Nasdaq: MRVL), American Eagle (NYSE: AEO), Gap (NYSE: GAP), Burlington Stores (NYSE: BURL), Campell’s Soup (Nasdaq: CPB), Autodesk (Nasdaq: ADSK), Birkenstock Holding (NYSE: BIRK), MongoDB (Nasdaq: MDB), 1-800-FLOWERS (Nasdaq: FLWS), Elastic (NYSE: ESTC), A-Mark Precious Metals (Nasdaq: AMRK), Atour Lifestyle Holdings (Nasdaq: ATAT), Brown-Forman (NYSE: BF.B), Domo (Nasdaq: DOMO), GMS (NYSE: GMS), HashiCorp (Nasdaq: HCP), Malibu Boats (Nasdaq: MBUU), MasterCraft (Nasdaq: MCFT), Photronics (Nasdaq: PLAB), Stratasys (Nasdaq: SSYS), Titan Machinery (Nasdaq: TITN).

Notable IPOs Today: GigCapital7 Corp. Unit (Nasdaq: GIGGU).

Notable Equity Crowdfunding Campaigns Ending Today: Postseason (Netcapital), Evoke Chi (Honeycomb), Bardelia (Republic).

Notable Economic Events Today: Jobless Claims (8:30 a.m ET), GDP (8:30 a.m. ET), PCE Prices / Core PCE Prices (8:30 a.m. ET), Goods Trade Balance (8:30 a.m. ET), Retail Inventories Excluding Auto (8:30 a.m. ET), Pending Home Sales (10:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

CrowdStrike Reveals Outage Impact

Who can forget the infamous CrowdStrike (Nasdaq: CRWD) outage in July? Well, the company finally disclosed the financial impact of that outage on Wednesday, causing the stock to drop 2.69% in after-hours trading.

Outlook: CrowdStrike expects revenue for the full year to be in the range of $3.89 billion to $3.90 billion, which is lower than the previous guidance. The company also lowered its earnings guidance.

Final Thoughts: Shares of Crowdstrike are down 23% since the outage.

Salesforce Posts Strong Results

Salesforce (NYSE: CRM) jumped 4.29 in after-hours trading on Wednesday after posting strong financial earnings results.

Financials: Salesforce reported earnings of $2.56 per share in the past quarter and revenue of $9.33 billion; both were better than expected.

Final Thoughts: The stock is up about 1% this year. It’s not a good time for enterprise software, but Salesforce is still getting by.

Bad Week for Telegram: Telegram-Linked TON Blockchain Suffers Second Outage (CoinDesk)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.