Explained: Nvidia Q2 results beat estimates. So why did the stock fall?

Nvidia Corp. beat Wall Street forecasts for the second quarter with record revenue, but its stock still fell 3% in after-hours U.S. trading and slid 2.9% in Frankfurt on Thursday, as investors fretted over softer data center sales and a sales outlook that failed to clear sky-high expectations.

The chipmaker posted $46.7 billion in Q2 revenue, above estimates of $46.05 billion, with net income surging 59% to $26.4 billion, or $1.05 per share, topping consensus of $1.01. Nvidia also projected third-quarter revenue of about $54 billion, plus or minus 2%, ahead of analysts’ $53.1 billion forecast.