Profits are up for NVIDIA the tech Company known for producing artificial Intellig intelligence chips Revenue in The second quarter was $30 billion That's an increase of 15% from the first Quarter and a 122% rise from a year ago Wall Street is Taking note Nvidia stock closed down More than 6% though Thursday but overall It's been up 150% this year Nico Grant joins me for More he's a tech technology Correspondent for the New York Times EO Help me understand Nvidia reported Strong second quarter earnings that Exceeded Wall Street expectations but The stock dropped by a pretty good Amount what Gives yeah this is not just strong Earnings but really massive I mean 122% growth this is a company that is at The heart of the AI boom it basically Makes the plumbing that companies like Google and open AI with chat GPT used to To have their AI systems work and I Think what we saw was incredibly high Expectations from Wall Street it happens Sometimes that you know Wall Street Needs a higher beat and a sort of bigger Beat in order to be impressed Nvidia Also announced yesterday that it was Having some problems with an upcoming Version of its chip technology um that Will be devoted to AI workloads um it
Still says that customers will receive Those AI chips this year so ultimately Won't be too much of a delay but I think That the expectations were just Incredibly High Nvidia has a market cap Of over 3 trillion one of only three Companies to ever do that I Mean expectations I mean at some point There has to be a ceiling um so it's I Guess what the question I'm stumbling Towards here in Eco is where does this Expectations Mismatch exist relative to the larger Question of is is there too much hype About AI has that hype cooled it doesn't Seem like it seems like they they wanted You know the expectations were super High for NVIDIA for AI yeah you know I think that for NVIDIA Uh they have a problem that I have seen Zoom have uh in the past where during The pandemic Zoom became an essential Service And it started posting these insane Numbers you know growth growing by well More than 100% um and what happens is that Investors get very used to it you also Start to see in the case of Nvidia Retail investors coming in people kind Of viewing uh you know opportunities to Make money off of it and with the stock At over $3 trillion dollar it's also an Opportunity to sell and to make a profit
Um we're seeing Wall Street Banks tell Their clients today that you should buy What they call the dip you know the fact That it's slightly lower is unlikely to Last um there's some profit taking and There are some folks who um may be Concerned by troubles with upcoming Chips that they have and the company Said that it's going to grow about 80% In terms of Revenue in the upcoming Quarter so the pace of growth may slow Which may also raise questions about how Long um they can really keep this up let Me switch gears here and ask you about Another Tex Tex St Yelp has now sued its Longtime rival Google um what exactly is Yelp Alleging yeah Yelp uh is saying Something that it has complained about For a very long time that Google Prioritizes its own technology its own Local search Services when you do a Google search say on a restaurant or a Hair salon that's nearby Google will Show a map of theirs and they will Basically have the information about the Businesses and below that Yelp has to Compete for space with other companies Such as maybe Trip Advisor um and other Companies that present information Yelp Is saying that by doing this Google is Basically taking the Monopoly that they Have in general search Services which we Use for finding out information about
Anything and trying to build a monopoly In local search as well and uh you know What is on the company's side um to some Particularly to yelp's lawyers uh they Believe is the fact that Google just Lost a landmark antitrust case uh in Federal court in Washington DC earlier This month in which a federal judge Declared the company an legal Monopolist and uh now we are going to See a legal process to determine what Consequences Google must face for that But that establishes precedent for Yelp To say well see it is a monopolist when It comes to General search and therefore It is using that power unfairly to Prevent Yelp from getting enough traffic And therefore from getting enough Advertisers to really be able to grow Its business and be competitive against Google and so briefly what does this Mean for the consumer in the future does He help make a claim of you know if it If it gets a remedy this will be the Better experience for the consumer what Will search look like if Yelp Wins if Yelp wins then we will see that Google would have to compete with Yelp If you search for um a plumber that's Near by for instance or for a cafe you May see Yelp if Yelp has more reviews at The top you may see a Yelp Link at the Top uh rather than seeing Google and it Would mean that Google services are
Further down on the page and so that Link to Google Maps might be just a Little bit harder to find Nico Grant With the New York Times that was very Helpful thank you so much Nico you
