"Earnings reports can swing fortunes overnight, and we saw a study in contrasts last week Nvidia ( NASDAQ:NVDA ) unveiled its third-quarter fiscal 2026 results last Wednesday after the market closed, posting record revenue of $57 billion - a 22% jump from the prior quarter and 62% year-over-year surge, fueled by unrelenting AI chip demand. Yet, despite crushing expectations, Nvidia's shares dipped about 4% in the days following, and continue to slide this morning amid broader tech sector jitters."
"Nvidia's Q3 was a testament to its AI dominance. Data center revenue - the engine of its growth - topped $51 billion, a 66% surge from last year, with gross margins narrowing slightly to 73.4% from 74.6% a year ago (but higher than Q2). CEO Jensen Huang dismissed "AI bubble" chatter , emphasizing sovereign AI investments and Blackwell chip ramps. Guidance for Q4 pointed to continued acceleration, with analysts raising their earnings expectations to $1.52 per share from $1.42, which is 12% above last year. On paper, it was a smashing success, but the market yawned, then dropped the stock."
Earnings produced contrasting investor reactions: Nvidia posted a fiscal Q3 record of $57 billion revenue, a 22% quarter-over-quarter rise and 62% year-over-year increase driven by AI chip demand, yet its shares fell about 4% amid tech-sector jitters. Data center revenue reached $51 billion, up 66% year-over-year, with gross margins at 73.4%. CEO Jensen Huang stressed sovereign AI investments and Blackwell chip ramps, and guidance suggested further acceleration. Walmart reported $179.5 billion revenue, up 6% year-over-year, with global e-commerce up 27% and advertising sales surging 53%, prompting a rally in its stock.
Read at 24/7 Wall St.
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