Nvidia Stock Just Did Something It Has Never Done Before. History Says the AI Stock Could Do This Next.

Nvidia’s monster third quarter, bullish guidance, and multi-trillion dollar potential was not enough to satisfy Wall Street. Similar to what happened last quarter, the world’s largest stock ticked more than two percent lower in overnight trading following the blowout earnings report:

Nvidia's Q3 2024 earnings exceeded expectations, but there are concerns over Blackwell chip issues and inventory shifts. Check out my analysis of NVDA stock.

Certain research has shown that investors tend to put too much faith in past earnings. Over time, this leads to a stock being overbought in the lead-up to an earnings release and a short-term dip after the release. What Nvidia is experiencing is very normal.

Nvidia reported fiscal third-quarter earnings after Wednesday's closing bell. MarketWatch will be breaking down the results.

"Nvidia heads into earnings with elevated expectations," said Hightower's chief investment officer, Stephanie Link. "The stock is up 172% year to date and 5% over the past month, with anticipation of a beat-and-raise tempered by potential revenue deceleration as the market awaits the [next-generation] Blackwell product."

What Nvidia investors should know about earnings.

If the still-rapid growth of artificial intelligence isn’t pushing the market higher right now, something else will have to do it.