Nvidia Beat Every Estimate That Mattered — Its Stock Still Fell First

Nvidia, the world’s most valuable public company at a market cap above $5 trillion, reported second-quarter revenue of $96.22 billion and adjusted earnings of $2.22 per share — both ahead of what analysts had modeled ($92.37 billion and $2.10, respectively). Guidance for the current quarter, at $108 billion, also came in above consensus. CEO Jensen Huang told analysts “the AI infrastructure buildout is at full steam,” and the company said its next-generation Vera Rubin platform has already drawn orders from “every major hyperscaler, AI cloud, and system OEM.”

Even with those numbers, the stock initially fell in the after-hours session before recovering. The reason, according to analysts, is the shape of the growth curve rather than its size: revenue grew 106% year-over-year last quarter, but guidance points to growth decelerating into the mid-to-high 80% range for the current one. Nvidia also flagged that memory-chip supply constraints are expected to remain a bottleneck through at least fiscal 2028, capping how fast it can fill the demand it says already exceeds what it can supply.

One technology analyst, Luke Lango of Innovation Investor, called the slowdown “not thesis-breaking” — noting quarterly data-center revenue near $89 billion and compute commitments that jumped from $119 billion to $279 billion in a single quarter, alongside a forward earnings multiple near 18x that he described as close to five-year lows for the stock. The distinction worth sitting with: a single company’s growth rate decelerating and an entire investment theme cooling off are two different questions, and the market’s first reaction to an earnings beat isn’t always a reliable answer to either one.