Nvidia ran many news articles today, and although the strong basics were there, the market still was not fully convinced.
2:45 PM – Analysts Remain Optimistic
Analysts maintained their favorable opinion on Nvidia despite the share price decline of approximately 3%. The primary factor behind the fall is investors' concerns about the stock price rather than the company performance.
3:02 PM – Record Q3 Earnings
Nvidia reported Q3 revenue of $57 billion, reflecting a 62% year-on-year increase, and thus marked another record quarter. The guidance for Q4 still looked solid, indicating a constant demand in the AI and data center markets.
4:37 PM – Market Still Hesitant
The market remained uncertain in spite of the great results. Investors are now putting more emphasis on:
High valuations
Diminishing returns on huge AI investments
The ability of growth to last next year
A textbook case of "good figures, but the bar was already set very high."
5:16 PM – Foxconn Order Reaction
Nvidia's shares continued to lose value after Foxconn announced that the delivery of the $1.4B supercomputing cluster would be scheduled only for 2026. It is not bad news, just longer wait times, which added to the already existing worries.
Nvidia practically gave out a super quarter, analysts celebrated, and the stock was still unresponsive because the attraction of the earnings exceeded the concerns over valuation. The company seems to be in good shape. The market, however, is merely posing the question, "Can this speed really go on?"
A very common reaction when expectations are already sky-high.