Saad Ullah
Nvidia's stock dropped over 5% despite reporting record quarterly revenue of $46.7 billion that beat analyst expectations, highlighting how high market expectations can lead to unexpected selloffs even after strong earnings.
Market Shock After Record Numbers
Wall Street got a reality check Tuesday when Nvidia delivered jaw-dropping quarterly revenue of $46.7 billion—crushing analyst forecasts by a wide margin. But here's the kicker: instead of celebrating, investors hit the sell button hard, sending the stock tumbling more than 5%. It's a perfect example of how "buy the rumor, sell the news" can play out, even when the news is spectacular.
Trader @KobeissiLetter captured the market's strange mood perfectly. Even though Nvidia beat both revenue and earnings estimates, NVDA shares got hammered—dropping from over $183 to $173.83 by close. The chart tells the whole story of how quickly things can turn in today's market.
This wasn't just a minor dip. It signals that investors may have already baked Nvidia's success into the stock price, leaving no room for good news to actually move the needle upward.
NVDA Stock Price Faces Selling Pressure
The intraday action was brutal to watch. NVDA shot above $182 right before the earnings release, then got absolutely crushed within minutes, falling into the $173 range. That's more than 5% wiped out in the blink of an eye, despite Nvidia's continued stranglehold on AI chip demand.
Now traders are scratching their heads, wondering if this is just a knee-jerk reaction or the start of something bigger after months of incredible gains.
Nvidia still owns the AI hardware game, but concerns about sky-high valuations and increased competition could keep pressure on the stock. The company's dominance in data centers and AI chips isn't going anywhere, but the market might need time to digest these massive numbers.
For long-term investors, this pullback might actually be a gift—assuming Nvidia can keep up this incredible growth trajectory.
Saad Ullah
