WHY IS NVIDIA CRASHING AFTER BEATING EARNINGS?!?
These notes were generated by AI and may contain inaccuracies.
Nvidia is down to lows of $186 after hitting highs of $203. From yesterday's post-earnings highs, it's down 8.5%; from previous close, down 4.7% (as of 7:27 in California).
Earnings Results
Nvidia beat earnings: EPS $1.62, revenue $68 billion, EPS surprise 6.58%, revenue surprise 3.87%.
Nvidia is always expected to beat as the most valuable publicly traded company. Other companies aspire to match it, but Nvidia leads the AI revolution.
Recent pattern with Nvidia, Meta, Google, Microsoft: all beat earnings and exceed expectations, yet stocks drop. These valuable companies may be overvalued. Market uncertainties include Trump tariffs, Iran-US tensions.
Question on AI spending: Are big trillion-dollar companies overspending? Not all aggressive AI investments by Amazon, Microsoft, Google will pay off; some will take hits.
Despite 4-5% retracement, no intention to sell long-term Nvidia position (entered sub $100/share). Did not buy at $195 due to macro outlook.
Love Nvidia long-term; it will grow. But with potential market downturn and NASDAQ overbought, avoid buying now. Cannot predict future perfectly or time market, but do not overpay blindly.
If markets retrace due to uncertainty, geopolitics, tariffs, big tech will drop too—buy at discount for recovery.
House analogy: Do not pay $1 million for a $500k house expecting it to reach $1 million later; seek deals respecting overbought/oversold levels. Not aiming for lowest price, but better entry.
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