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

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.

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

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”.

Olympics pumps up bike sale

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.

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.”

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.