Nvidia's Earnings Roared Higher to Record Levels. So, Why Isn't the Stock Soaring?

Nvidia (NASDAQ: NVDA) investors have grown used to positive surprises. The top artificial intelligence (AI) chip designer has surpassed analysts' earnings estimates and delivered double- or triple-digit growth quarter after quarter in recent times. This is thanks to Nvidia's strength in this booming chip market and the company's move to go all-in on AI, offering customers a full selection of related products and services.And this tech powerhouse didn't disappoint in its fourth-quarter and fiscal 2025 full-year report last week, reporting better-than-expected revenue and net income that surged to record levels. On top of this, Blackwell -- Nvidia's new game-changing architecture -- blasted onto the scene in the company's fastest product ramp ever. Nvidia offered various details about its market position and what's ahead for AI, signaling that growth is far from over.After this kind of report, you might expect Nvidia's stock to surge. But in fact, it didn't. The stock slipped more than 9% on Thursday in the trading session following the report, then went on to advance a little less than 4% on Friday. So, after such a positive earnings report, why isn't the stock taking off? Let's find out.Continue reading

Mar 3, 2025 - 00:33
 0
Nvidia's Earnings Roared Higher to Record Levels. So, Why Isn't the Stock Soaring?

Nvidia (NASDAQ: NVDA) investors have grown used to positive surprises. The top artificial intelligence (AI) chip designer has surpassed analysts' earnings estimates and delivered double- or triple-digit growth quarter after quarter in recent times. This is thanks to Nvidia's strength in this booming chip market and the company's move to go all-in on AI, offering customers a full selection of related products and services.

And this tech powerhouse didn't disappoint in its fourth-quarter and fiscal 2025 full-year report last week, reporting better-than-expected revenue and net income that surged to record levels. On top of this, Blackwell -- Nvidia's new game-changing architecture -- blasted onto the scene in the company's fastest product ramp ever. Nvidia offered various details about its market position and what's ahead for AI, signaling that growth is far from over.

After this kind of report, you might expect Nvidia's stock to surge. But in fact, it didn't. The stock slipped more than 9% on Thursday in the trading session following the report, then went on to advance a little less than 4% on Friday. So, after such a positive earnings report, why isn't the stock taking off? Let's find out.

Continue reading