Nvidia (NVDA) Sets Earnings Record, So Why Hasn’t The Stock Followed?

5 months ago 21

The US banal marketplace has been embroiled successful a authorities of volatility and uncertainty successful caller months. Not lone are determination geopolitical concerns, but determination are worries forming for immoderate of the biggest companies successful the world. There whitethorn beryllium nary much prevalent than Nvidia (NVDA), which acceptable net records with its Q4 data, portion its banal has yet to travel suit. But why?

Yet again, the AI chipmaker has outperformed expert expectations. The institution has delivered bout double- and triple-digit maturation seemingly 4th aft quarter. However, that has led to accrued expectations. Moreover, that could beryllium what’s mounting the institution backmost from thriving connected tremendously affirmative data.

Nvidia (NVDA) CEOSource: Fortune

Also Read: Nvidia (NVDA) Stock March 2025 Price Prediction

Nvidia Earnings Set New Records: Will NVDA Stock Do the Same?

Late past week, we predicted that Nvidia’s stellar net successful Q4 would garner a far antithetic reaction from investors than it had previously. Indeed, traders person travel to expect outperformance arsenic a accordant world for the AI firm. Therefore, thing abbreviated of astronomical performances would not person a affirmative effect connected the banal price, astatine slightest not immediately.

That proved to beryllium true; Nvidia’s (NVDA) net acceptable records, yet it has failed to bespeak that occurrence successful its wide banal price. The institution reported gross and nett income figures that were astatine grounds marks and exceeded expert expectations. The effect shocked many, with the banal falling implicit 9%. Little changed, arsenic the banal had lone rebounded 4% connected Friday.

Nvidia (NVDA)Source: CNBC

Also Read: Nvidia (NVDA) Stock Falls 8% Following Poor Q1 2025 Outlook

There are galore reasons wherefore the banal didn’t respond the mode galore expected. First, it has been expanding much than 1,700% implicit the past 5 years. Therefore, immoderate investors whitethorn beryllium utilizing this clip for profit-taking. Moreover, the institution has continued to dip implicit definite periods contempt affirmative quality abounding.

As a substance of fact, Nvidia has been forming thing of a trend. In its past 2 net reports, some positive, the banal fell successful the period after. This should quell concerns implicit Nvidia’s effect this time. There are inactive precocious hopes for the banal successful the adjacent future.

Nvidia holds a median terms people of $175, according to CNN. That would beryllium a 47% summation successful its existent position. Moreover, its high-end projection sits astatine $235, showcasing a 99% upside for the stock. Additionally, its low-end projection is astatine $135, showing that adjacent its cautious forecast shows a 13% upside from wherever it stands now.

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