May. 23 at 2:13 AM
Nvidia once again beat quarterly expectations, raised dividends, expanded share buybacks, and saw multiple Wall Street firms lift price targets. However, the stock still fell 1.75% after earnings and is down 2.55% since last Friday, highlighting how elevated expectations have become for the company at the center of the AI boom.
The company reported
$81.6B in quarterly revenue and guided for
$91B next quarter, both above consensus estimates. Growth was driven not only by GPUs but increasingly by its networking business, which hit a record
$14.8B, reflecting stronger adoption of its AI infrastructure ecosystem.
Despite the strong fundamentals, the market reaction reflects a tension between results and expectations. JPMorgan, Bank of America, and Morgan Stanley all raised price targets and reaffirmed bullish views, citing Nvidia’s dominance in AI compute, data centers, and networking.
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