Key Stats for Nvidia Stock
- Price Change for $NVDA stock: -3%
- Current Share Price: $176
- 52-Week High: $184
- $NVDA Stock Price Target: $194
What Happened?
NVIDIA (NVDA) stock is down 3% despite reporting better-than-expected earnings and revenue for its second quarter of fiscal 2026.
The semiconductor giant reported adjusted earnings per share of $1.05, surpassing the estimated $1.01, while revenue of $46.74 billion exceeded the consensus of $46.13 billion.
However, investors focused on data center revenue of $41.1 billion, which fell short of StreetAccount estimates of $41.34 billion, marking the second consecutive quarter that the critical data center segment missed expectations.
This occurred despite overall revenue growing 56% year-over-year, though fiscal Q2 represented NVIDIA’s slowest growth rate in nine quarters since the AI boom began.
Nvidia provided strong forward guidance of $54 billion in revenue for the current quarter, exceeding analyst expectations of $53.1 billion.
Management noted this outlook excludes potential H20 chip sales to China, which could add $2 billion to $5 billion if geopolitical issues are resolved.
See analysts’ growth forecasts and price targets for Nvidia stock (It’s free!) >>>
What the Market Is Telling Us About Nvidia Stock
The modest sell-off in Nvidia stock reflects investor concerns about deceleration in NVIDIA’s explosive growth trajectory, despite the company’s continued dominance in AI infrastructure spending.
CFO Colette Kress projected $3 trillion to $4 trillion in AI infrastructure investments by the end of the decade, underscoring the massive long-term opportunity.
NVIDIA’s Blackwell platform continues gaining momentum, with sales growing 17% sequentially and representing approximately 70% of data center revenue.
The chip maker is transitioning from node-scale to rack-scale computing with its NVLink 72 technology, positioning for the shift toward reasoning and agentic AI models that require exponentially more compute power.
The market appears sensitive to any signs of moderation in NVIDIA’s previously astronomical growth rates.
While 56% year-over-year revenue growth would be exceptional for most companies, it indicates a cooling from the triple-digit growth rates NVIDIA achieved in recent quarters.
However, management’s confident long-term outlook and the expanding addressable market for AI infrastructure suggest the company remains well-positioned despite near-term growth normalization.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
