Core Viewpoint - Nvidia's performance was solid but did not exceed expectations, leading to concerns about its ability to meet high market expectations [1][4]. Financial Performance - Nvidia reported Q2 revenue of $46.7 billion, marking the lowest year-on-year growth rate in over two years, yet still above analyst expectations [1]. - The guidance for Q3 revenue is set at a midpoint of $54 billion, aligning closely with market expectations but perceived as lackluster [1]. Market Reaction - Following the earnings report, Nvidia's stock fell over 3% in after-hours trading [2]. Analyst Insights - Goldman Sachs noted that while Nvidia's quarterly performance and guidance were stable and met Wall Street expectations, they may not satisfy the previously high market expectations, potentially leading to downward pressure on the stock [4]. - Key factors influencing Nvidia's future include customer demand and supply chain issues, long-term revenue visibility, details on the next-generation Rubin product line, and the status of its China business [5]. Future Considerations - Investors are particularly focused on the sustainability of AI chip demand and any potential supply chain constraints [5]. - The company has not shipped H20 chips to China this quarter, raising questions about its business in that region [5]. - Future gross margin trends will be closely monitored to assess Nvidia's pricing power and profitability in a competitive landscape [5]. Analyst Ratings - Goldman Sachs maintains a "Buy" rating on Nvidia with a 12-month price target of $200, based on a normalized EPS of $5.75 and a P/E ratio of 35 [6]. - The report highlights four key risks that investors should be aware of, including potential slowdowns in AI infrastructure spending, increased competition from rivals like AMD, and supply chain limitations [6][7].