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Key Takeaways
- Nvidia posted record sales that topped Wall Street estimates, but the stock was little changed and slightly lower in the wake of the results.
- Analysts said the chipmaker faced a particularly high bar to impress, after the tech sector’s recent rally that sent Nvidia and other stocks to record highs.
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Nvidia delivered another blockbuster quarter with earnings that topped Wall Street projections. So why isn’t the stock getting a boost?
Shares of Nvidia (NVDA) were down less than 1% in recent trading, despite record sales from the AI chipmaker as data center revenues nearly doubled from a year ago. Several analysts pointed to a record rally and rising expectations heading into the results that may have made it harder for the chipmaker to impress.
Morgan Stanley analysts, who lifted their price target to $288 from $285 following the results, told clients they would view the muted reaction as an opportunity, considering Nvidia an “unassailable” industry leader and “best value” pick that still has room for growth.
Why This Matters to Investors
Shares of Nvidia and a number of other tech stocks have rallied to record highs in recent weeks after a string of solid reports on strong AI demand. That rally may have left many investors wondering if Nvidia’s stock still has room to rise.
Jefferies analysts said that considering Nvidia’s growth and forecasts, the chipmaker’s stock “continues to look remarkably cheap the more it grows but for now investors seem focused elsewhere.”
Investors have been difficult to impress this quarter, as a number of market heavyweights have beaten estimates and not seen their stocks rewarded as much as they normally would be.
Shares of Nvidia have been big gainers in 2026, outperforming the tech-focused Nasdaq 100 and the S&P 500 by substantial margins. Up about 20% year-to-date, the only Magnificent 7 stock to post better performance so far has been Alphabet (GOOGL), Google’s parent company.
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