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Nvidia Earnings Miss

Nvidia Earnings Miss

Nvidia’s stock falls in after-hours trading after coming short of earnings expectations.

Ankit Sinha
August 28, 2025

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Your Daily Dose of Market & Career Clarity

📬 Delivered to 150,000+ ambitious readers

🎯 In this issue:

Banana Bits: Finance headlines that actually matter
Market Summary: Stocks gain as Nvidia falls after hours
Lesson from the Library: How to write a pro-level equity research report
What’s Ripe / Rotten: The tastiest and most disgusting stocks
Technical Trip: Interview Q&A from Goldman Sachs
Deal Dispatch: M&A, IPOs, and other transactions
The Daily Poll: See how you stack up

Market Snapshot

📉 Banana Bits

Nvidia’s stock falls in after-hours trading after coming short of earnings expectations.
President Donald Trump’s top advisor says Fed Governor Lisa Cook should go on leave until her status is cleared.
Mexico is planning on raising tariffs on China as part of their 2026 budget proposal.
Crowdstrike’s stock takes a turn for the worse after a lackluster earnings call.
The Philippines is planning another rate cut as tariffs begin to plague their economy.
Consumers are continually concerned about the German economy.
Is the end of Fed independence here?
Australian inflation jumps higher, justifying action by the RBA to hold off on rate cuts.
OpenAI is updating ChatGPT to better help users who are mentally distressed.
AI is certainly changing the software space, but will it eliminate the $1.2 trillion industry?
Coffee prices are expected to increase as a result of tariffs.

Market Recap

AI Boom In Question

Stocks recorded gains today as Nvidia, the company with the highest market valuation, fell short of earnings after market close, causing the stock to fall a little over 3% in after-hours trading.

This shortcoming questions the overall sustainability of AI growth, in addition to how bullish investors have been on AI stocks during this so-called “AI boom.”

Nvidia also approved a $60 billion share buyback program, further solidifying their confidence in the performance of their stock.

Despite this, there are many questions yet to be answered regarding Nvidia’s ability to sustain this expected growth on a long-term basis, given their sales growth rate is slightly decreasing.

This decelerating growth can be partially attributed to China wanting to move away from U.S chipmakers, as well as constantly changing trade policies that significantly affect Nvidia’s business. Additionally, the U.S has not set in stone the potential 15% import tariff on chip sales from China.

A significant question that has yet to be answered is the sustainability of the growth of not only Nvidia but the overall AI industry. AI demand has been through the roof for the past 2 years, but that could be coming to a sharp halt as some of these chipmakers are trading at extremely high multiples, leading to potentially unsustainable growth.

What's Ripe

MongoDB, Inc. (MDB) 38.0%

Mongo’s stock surged yesterday after absolutely crushing earnings, with revenue and EPS both coming above expectations.
The software company reported $1.00 in adjusted EPS above the $0.67 consensus estimate, and $591 million in revenue, above the $554 million consensus estimate.

EchoStar Corporation (SATS) 15.5%

Echostar kept on climbing today after surging more than 70% on Tuesday as a result of announcing their sale of wireless spectrum to AT&T.
This announcement kept investor sentiment high going into Wednesday’s trading, pushing the stock higher.

What's Rotten

LI Auto Inc. (LI) 8.3%

LI’s stock fell sharply ahead of their Q2 earnings report as investors had mixed feelings about their recent EV sales and were expecting a miss in Q2.
Several financial institutions, including J.P. Morgan, also downgraded the price target for LI Auto.

Knife River Corporation (KNF) 8.2%

KNF’s shares fell yesterday as a result of broad macroeconomic pressures surrounding the contracting industry and overall rising costs.
Several banks also downgraded their price target and changed their status from buy to hold.

🧠 Technical Trip

Q&A from Goldman Sachs

👉 Want 1-on-1 recruiting help from Goldman Sachs bankers & 2,000+ top mentors? Apply to WSO Academy

📚 Lesson from the Library

Check out an equity research report applying insights from our Investment Banking and Investment Analysis courses.

🦈 Deal Dispatch

M&A, IPOs, And Other Notable Transactions

Bain Capital is looking to sell Canada Goose, a luxury parka maker, at a $1.35 billion valuation.
Attio, a CRM startup, has raised $52 million in a Series B funding round.
Bow River Capital announced their plans to acquire Park Cities Asset Management.
Pacific Avenue Capital Partners announced plans to acquire auto parts business Pick Your Part.
Mercedes-Benz plans to sell a 3.8% stake in Nissan Motor.
Eldridge Capital Management is reportedly raising $1 billion for a GP solutions fund.
VC firm Portfolia is raising a $20 million fund to focus on women’s health.