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

Nvidia Corp.’s surging share price has created a challenge for Jensen Huang’s charitable foundation: As the stock climbs, so does the amount of money it has to give away.

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:

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

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."