Nvidia Reports 85% Revenue Growth, Stock Drops Over 3% on AI Expectations
NVDA•Nvidia reported first-quarter revenue up 85% year-over-year and maintained a 75% gross margin but its stock has declined over 3% since the earnings release. High market expectations for AI growth have already priced in significant gains, leaving limited upside and elevated volatility risk for investors.
1. Strong Q1 Earnings
In its first quarter, Nvidia achieved 85% year-over-year revenue growth, driven by robust AI data center and gaming segment demand, while sustaining a 75% gross margin on high-margin GPU sales.
2. Market Reaction and Outlook
Despite the stellar results, shares dropped over 3% as investors had already priced in aggressive future earnings, and volatility may rise ahead of the new Vera Rubin processor launches and evolving AI sector competition.
