Despite reporting record-breaking revenues of $30 billion for the recent quarter, Nvidia’s shares have fallen by about 6% in after-hours trading. The decline comes despite the company’s impressive 122% year-over-year revenue growth, which far exceeded analysts’ expectations. The market reaction appears to be driven by concerns over the sustainability of this growth rate and fears that Nvidia’s exceptional performance may not be replicable in the future quarters.
Investors were particularly cautious due to slowing growth expectations and production delays related to Nvidia’s upcoming Blackwell chips. Additionally, analysts suggest that while Nvidia has consistently exceeded expectations, the market now demands not just outperformance but extraordinary growth, leading to heightened pressure on the company.
Despite this recent dip, Nvidia remains a dominant player in the AI chip market, with its stock still up approximately 150% for the year