Key Takeaways
- Nvidia’s $57 billion quarterly earnings beat estimates, but shares fell nearly 2% on Thursday, fully reflecting a 6% recovery after the earnings report
- The reversal hit broader markets, with Tesla, Google and Bitcoin wiping out all gains, raising concerns about the strength of AI trading
Nvidia erased all its earnings gains on Thursday, falling nearly 2% despite reporting a blowout quarter the day before. The stock was up more than 6% in after-hours trading on Wednesday after the company beat expectations with $57 billion in revenue, up 62% year over year, driven by rising demand for its AI data center chips.
That division’s revenue rose 66% to more than $51 billion. CEO Jensen Huang dismissed concerns about an AI bubble, saying: “From our point of view, we see something very different.” He described demand for the company’s new Blackwell systems as “off the charts” and noted that cloud GPUs are “selling out.”
Nvidia also forecast fourth-quarter revenue between $63.7 billion and $66.3 billion, exceeding analyst expectations. But the optimism quickly faded. By Thursday afternoon, Nvidia shares had reversed all of their gains, renewing doubts about the staying power of the AI trade.
Technology stocks largely followed the same pattern. Google fell after an early 3% gain, Tesla gave back a 6% morning rally and the S&P 500 turned negative after rising as much as 1.5%.
Bitcoin showed similar weakness. It briefly recovered the $92,000 level on Wednesday evening, but fell below $87,000 on Thursday afternoon.
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