Nvidia Shares Drop Despite Strong Earnings Report

Nvidia reported strong quarterly results, with revenues rising 122% year-over-year to $30 billion and net income soaring to $16.6 billion. Despite beating Wall Street estimates, Nvidia's shares fell by over 5% in after-hours trading due to unmet sky-high investor expectations and slightly lower gross margin guidance. The company, which has significantly benefited from the AI boom, also announced a $50 billion stock buyback and highlighted the impending release of its next-generation AI chip, Blackwell. Broader market reactions were negative, with major indices like the Dow, S&P 500, and Nasdaq all closing lower. Analysts suggest the market's reaction reflects a recognition that Nvidia's unprecedented growth rates may be slowing.