Traders work on the floor of the New York Stock Exchange during morning trading on August 26, 2025 in New York City.
Michael M. Santiago | Getty Images
Stock futures fell on Wednesday evening as investors weighed Nvidia’s latest quarterly results.
S&P 500 futures traded 0.3% lower, and Nasdaq 100 futures slipped nearly 0.5%. Meanwhile, futures tied to the Dow Jones Industrial Average were down 12 points, or 0.03%.
In extended trading, shares of Nvidia – which makes up about 8% of the S&P 500, per FactSet – fell around 3%, even after its second-quarter results beat Wall Street’s estimates. Chip stocks also came under a bit of pressure following the artificial intelligence bellwether’s results, as AMD, Taiwan Semiconductor and Broadcom each fell 1% in sympathy.
Heading into the print, investor expectations were elevated as the S&P 500 closed at a record high. Even though Nvidia’s results surpassed expectations, investors were setting the bar even higher.
“The negative stock reaction feels like a bit of an incorrect knee-jerk reaction,” David Wagner, head of equity at Aptus Capital Advisors, said, adding that investors should be “buying the pullback.”
“The company is still growing over 50% on their guidance at a $50B quarterly revenue run rate – that’s remarkable, even for the current valuation,” he said.
Notably, Nvidia said there were no sales of H20 chips to China during the quarter, nor did the company assume any shipments in its guidance. The White House said earlier this month that it’s still working out the “legality” of its 15% export tax on Nvidia and AMD.
“That’s important because that’s just an unknown. Do they actually get that license for the H20 and start making sales?” Art Hogan, chief market strategist at B. Riley Wealth Management, told CNBC. “Not putting anything into the Q3 guide means that there’s more upside potential if, in fact, they get the license for the H20 into China.”
To be sure, Hogan also said that he believes the AI boom is still in “the very early innings.” He thinks that overall, the market will “breathe a sigh of relief” on Thursday, with investors thinking “Nvidia is still the king of the artificial intelligence revolution” after CEO Jensen Huang “does another masterful job of explaining what we should be looking for moving forward.”
The market is coming off a winning session Wednesday. The S&P 500 and the Nasdaq Composite similarly rose around 0.2%, with the broad market index hitting a record close, while the Dow Jones Industrial Average advanced 0.3%.
The market is on pace to score a monthly gain as well following Wednesday’s moves, as the S&P 500 and the Nasdaq are each up more than 2%, while the 30-stock Dow is up more than 3% in the period.
What Nvidia’s earnings mean for the stock market and AI trade
Nvidia‘s closely watched earnings report showed weaker-than-expected sales at its data center business, though the stock’s pullback in extended trading may prove short-lived with investors still believing in the artificial intelligence trade.
The chipmaker beat Wall Street’s expectations for fiscal second-quarter earnings and gave a stronger current-quarter revenue forecast than anticipated. But shares tumbled in after-hours trading as second-quarter data center revenue came in slightly below the Street’s consensus view.
Still, data center revenue soared 56% from a year ago and made up 88% of total sales. Nvidia said it didn’t sell any of its H20 processors to customers in China during the period, but it released $180 million worth of inventory to a client based elsewhere.
The knee-jerk reaction over the data center revenue miss may be more about how Wall Street calculated its estimates than it is about Nvidia’s performance, said Gene Munster, a co-founder at Deepwater Asset Management.
Read more here.
— Alex Harring
Nvidia, Snowflake, NetApp among the names making moves after hours
Some stocks are making big moves in extended trading Wednesday:
- Nvidia – Shares of the chip giant fell more than 3%. The company’s second-quarter results beat on the top and bottom lines, posting adjusted earnings of $1.05 per share and $46.74 billion in revenue. That’s compared with the $1.01 per share and $46.06 billion, respectively, that analysts surveyed by LSEG were anticipating. Data center revenue tallied $41.1 billion. Although that marked a 56% increase year over year, it missed the StreetAccount estimate of $41.34 billion.
- Snowflake – Shares jumped about 12% on the heels of the data cloud and artificial intelligence company posting better-than-expected second-quarter results. Snowflake earned 35 cents per share, after adjustments, on revenue of $1.14 billion, above the profit of 27 cents per share and $1.09 billion in revenue that analysts were expecting. Its third-quarter guidance was also upbeat.
- NetApp – The stock fell more than 6% after the intelligent data infrastructure company’s first-quarter results just barely beat expectations. The company earned $1.55 per share, excluding items, and $1.56 billion in revenue, while analysts were looking for $1.54 per share and $1.55 billion in revenue, according to LSEG. Its outlook was also roughly in line with analyst estimates.
Read the full list of names here.
— Sean Conlon
S&P 500 futures open lower after Nvidia earnings
S&P 500 futures fell Wednesday night on the heels of Nvidia’s recent earnings report.
Shortly after 6 p.m. ET, futures tied to the broad market index declined 0.3%, while Nasdaq 100 futures fell 0.5%. Futures tied to the Dow Jones Industrial Average lost 30 points, or 0.1%.
— Sean Conlon
