**Subject: Nvidia Earnings Update – Strong Results, Weak Reaction**
Dear Copiers,
$NVDA (NVIDIA Corporation) released its highly anticipated earnings report last night. The numbers were very strong. The stock initially rose nearly 4% in after-hours trading, but that move has fully reversed today. As I write this, Nvidia is down about 5% — its largest drop since October.
Let’s first review the key figures, then examine why investors may be selling.
**Earnings Highlights**
* EPS: $1.62 vs. $1.50 expected
* Total Revenue: $68.13B vs. $66B expected
* Data Center Revenue: $62.3B vs. $60.3B expected
* Q1 Revenue Guidance: $78B vs. $72B expected
This was a clear beat across all major metrics. Revenue exceeded expectations by over $2B, EPS topped forecasts by approximately $0.12 per share, and forward guidance came in significantly above Wall Street estimates — signaling continued strong demand for AI infrastructure.
So why is the stock selling off?
Despite the strong results, several factors appear to be driving today’s decline:
1. Valuation sensitivity: Nvidia is priced for exceptional growth. When expectations are elevated, even strong beats can trigger profit-taking.
2. AI cycle concerns: Some investors remain cautious about the sustainability of the AI spending cycle. Broader “AI bubble” narratives continue to weigh on sentiment.
3. Sell-the-news dynamics: The stock had rallied significantly into earnings. Short-term traders may simply be locking in gains.
While short-term volatility can be uncomfortable, it does not change the fundamental trajectory of the business.
As a long-term investor in Nvidia, I continue to view it as a high-quality company positioned at the center of AI infrastructure. Market sentiment fluctuates, but fundamentals ultimately drive long-term value. In my view, today’s reaction reflects positioning and expectations rather than a deterioration in the company’s outlook.
I remain confident in holding Nvidia for the long term.
Sincerely,
Lena
26/02/2026... Show More
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Sat Apr 18 2026 03:56:05 GMT+0000 (Coordinated Universal Time)
