Nvidia’s Record-Breaking Earnings: So Why Is Its Stock Stuck?
Nvidia just reported insane earnings, completely blowing past Wall Street’s expectations. The company pulled in $39.33 billion in revenue, a jaw-dropping 78% jump from last year, and even beat the already high forecast of $38.25 billion. Profits? Up too—$0.89 per share, slightly ahead of the predicted $0.84.
The real money-maker? Nvidia’s data center business, which brought in $35.6 billion—a mind-blowing 409% increase from last year. With AI booming, demand for Nvidia’s chips is off the charts. CEO Jensen Huang said the company’s latest Blackwell GPU is already generating massive interest, despite a few early production hiccups.
So Why Isn’t Nvidia’s Stock Skyrocketing?
You’d think with numbers like these, Nvidia’s stock would be soaring. But after an initial 3.7% jump during regular trading, the stock started bouncing around after hours, settling around $131. It even gave up some early gains.
Why the hesitation? A few reasons:
- Investors are cautious—The overall stock market has been shaky, and trade tensions plus economic worries have kept people on edge.
- Higher costs ahead—Nvidia warned that gross margins might dip next quarter because of the high costs of ramping up Blackwell production. Even a company crushing earnings like Nvidia isn’t immune to market nerves.
How the Market Reacted
It wasn’t just Nvidia having a weird day—here’s how the rest of the market performed:
- S&P 500: Basically flat, closing at 5,956.18 points
- Nasdaq Composite: Managed a 0.3% gain, breaking a four-day losing streak
- Dow Jones: Struggled, dropping 0.4% to 43,433.12 points
Clearly, investors are playing it safe as they wait for more clarity on the economy and interest rates.
What’s Next for Nvidia?
Despite today’s stock wobble, Nvidia isn’t slowing down. The company expects first-quarter revenue to hit $43 billion, again topping Wall Street’s forecast of $42.05 billion. However, those higher production costs could keep margins tight in the short term.
Still, there’s zero doubt that Nvidia remains at the center of the AI revolution. Long-term, demand for its chips isn’t going anywhere. But in today’s unpredictable market, even a tech giant like Nvidia isn’t guaranteed a smooth ride.
