Nvidia Shares Plunge 5.5% Despite 73% Revenue Surge to $68.1B
Nvidia reported record quarterly revenue of $68.1 billion, up 73% year-on-year, with data-center sales jumping 75% to $62.3 billion and GAAP gross margin of 75%. Despite beating estimates and returning $41.1 billion to shareholders, Nvidia stock tumbled 5.5% post-earnings, the steepest one-day drop since April 2025.
1. Record Quarterly Performance
Nvidia delivered revenue of $68.1 billion for the quarter, a 73% increase year over year, with data-center sales up 75% to $62.3 billion. The company achieved a GAAP gross margin of 75%, diluted EPS of $1.76 and returned $41.1 billion to shareholders through buybacks and dividends.
2. Market Reaction and Stock Decline
Shares fell roughly 5.5% on the day of the earnings release, marking the largest one-day percentage drop since April 2025. Investors expressed concern over the pace of AI infrastructure spending and the need for clearer returns on massive capital outlays.
3. Bullish Analyst Outlook
Analyst Dan Ives described the quarter’s results as “Michael Jordan-like numbers” and projects Nvidia will lead in multiple AI verticals—including business AI, robotics and autonomous systems—over the next 18 to 36 months, underpinning his continued bullish stance.