Nvidia Stock Trades Flat Despite $1 Trillion Sales Target as 'Market Expects Nvidia to Keep Beating Expectations'

NVIDIA announced an $80 billion stock buyback authorization and raised its quarterly dividend from $0.01 to $0.25 per share. The company also projected $1 trillion in sales of its most advanced AI chips across the current year and the next year. In the reported quarter, NVIDIA generated $81.6 billion in revenue, up 85.2% year over year, and delivered non-GAAP EPS of $1.87, ahead of consensus. Despite these results, the stock fell 4.43% during the week ending May 22, closing at $215.33. Expectations for continued outperformance appear already elevated, and rising bond yields may compress valuation multiples for long-duration AI growth.

"Yet shares still slipped. According to Fuse data, NVDA fell 4.43% during the week ending May 22, closing at $215.33. The Reuters host argued the market already expected NVIDIA to "keep beating expectations to this degree," while rising bond yields may be limiting how much investors are willing to pay for long-duration AI growth stories. Higher yields compress valuation multiples across growth stocks, particularly companies where investors are already pricing in years of exceptional expansion."

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