Nvidia Stock Retreats Despite Strong Earnings as AI Valuation Concerns Surface
Nvidia shares reversed early gains despite posting record quarterly results, with revenue surging 62% year-over-year to $57 billion. The chipmaker's data center segment drove performance, generating $51.2 billion as demand for AI processors remains robust. CEO Jensen Huang characterized the appetite for Nvidia's technology as "off the charts," underscoring the company's pivotal role in generative AI infrastructure.
The 2% decline reflects growing market apprehension about stretched valuations in the AI sector. While the earnings beat initially propelled the stock 5% higher, profit-taking emerged among investors mindful of this year's substantial rally. The retreat signals tempered Optimism about whether current growth trajectories can justify premium pricing across tech equities.
