Thu Nov 20 17:40:00 UTC 2025: Summary:

Nvidia (NVDA) stock dipped 3.15% on Thursday, despite the company reporting better-than-expected Q3 earnings and a strong Q4 outlook. While Nvidia exceeded analyst expectations with $1.30 EPS on $57.01 billion revenue and projected $65 billion in revenue for Q4, the broader market downturn and profit-taking may have contributed to the stock’s decline. Some major investors, including Peter Thiel’s hedge fund and SoftBank Group, recently sold off their Nvidia holdings. Despite the day’s drop, Nvidia remains a strong performer, up significantly year-to-date. The company’s CEO, Jensen Huang, highlighted the strong demand for Blackwell GPUs and the rapidly scaling AI ecosystem. CFO Colette Kress defended the longevity of Nvidia’s products amidst concerns about overstated earnings in the AI sector, referencing CUDA software updates prolonging the use of older GPUs.

News Article:

Nvidia Stock Dips Despite Strong Earnings Report, Positive Outlook

SAN FRANCISCO, CA – Nvidia (NVDA) shares fell 3.15% on Thursday, a surprising turn after the chipmaker announced robust third-quarter earnings and a promising forecast for the current quarter. The decline occurred despite Nvidia exceeding analyst expectations, reporting earnings per share of $1.30 on revenue of $57.01 billion, compared to estimates of $1.26 EPS on $55.2 billion revenue. For the fourth quarter, the company projects revenue of $65 billion, significantly higher than the Wall Street consensus of $62 billion.

“Blackwell sales are off the charts, and cloud GPUs are sold out,” stated CEO Jensen Huang, emphasizing the booming demand for Nvidia’s AI products and the rapid expansion of the AI ecosystem.

The dip in Nvidia’s stock price mirrored a broader market downturn, affecting other “Magnificent Seven” tech stocks. However, some investors may be taking profits after Nvidia’s impressive run, which saw its market capitalization briefly surpass $5 trillion last month. Furthermore, high-profile investors like Peter Thiel’s hedge fund and SoftBank Group recently liquidated their Nvidia holdings.

Despite the day’s setback, Nvidia’s data center business, a key growth driver, reported revenue of $51.2 billion, exceeding expectations. While gaming revenue slightly missed estimates, the company remains bullish on its future, with CFO Colette Kress highlighting the strong demand for both its newer Blackwell Ultra architecture and its previous Blackwell models.

Kress also addressed concerns about the depreciation of data center equipment raised by investor Michael Burry, emphasizing the long lifespan of Nvidia’s accelerators due to the company’s CUDA software.

Nvidia’s stock remains up more than 37% year-to-date and 25% over the last 12 months, demonstrating its continued dominance in the AI market. The company is facing increasing competition from rivals like Advanced Micro Devices, but the demand for its chips powering AI applications is expected to keep booming.

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