Oops! Nvidia's Stock Is Falling Again After Its "Blowout" Earnings Report

"On Wednesday night, Nvidia released its highly anticipated-slashed-dreaded quarterly earnings report - and Wall Street let out a sigh of relief, at least initially. The multitrillion dollar chipmaker at the center of the AI boom reported a ludicrous $57 billion in quarterly revenue, netting it nearly $32 billion in profit. Compared to the same quarter from the year before, it amounted to a 62 percent surge in sales, and a further 65 percent increase in profit."

"Nvidia's stock spiked by over four percent when trading resumed on Thursday morning. Other tech stocks received a boost, too, as did the S&P 500 overall. The chipmaker's " blowout " quarter calmed fears of an AI bubble bursting on the horizon. If the nearly $5 trillion behemoth responsible for providing the hardware used by AI makers was still seeing its profits balloon, then perhaps the economy collapsing wasn't in the cards just yet, and everyone could feel secure about pouring more money into AI."

"But the fuzzy feelings didn't last. While headlines were still trickling out today about the stock market's rally in the wake of Nvidia's awesome third quarter, Nvidia's stock did a swift 180, plunged again, and is now down by over 4 percent over the course of the day. And once again, other tech stocks followed. Microsoft shares are now down by 1.6 percent, and Google's by around 1 percent, even though it just released its hot new Gemini 3 AI model."

Nvidia reported $57 billion in quarterly revenue and nearly $32 billion in profit, marking a 62 percent sales increase and a 65 percent profit jump year-over-year. The stock initially rose over four percent and lifted other tech shares and the S&P 500, easing short-term fears about an AI bubble. Later the same day Nvidia shares reversed course and fell more than four percent, pulling down peers such as Microsoft and Google. Market observers noted that strong semiconductor sales do not resolve concerns that hyperscalers may be overspending on AI infrastructure.

Read at Futurism