Sat Nov 22 09:20:00 UTC 2025: Summary:

Despite exceeding expectations for its third-quarter earnings and providing a strong outlook for the fourth quarter, Nvidia’s stock price dipped 3.15% on Thursday, mirroring a broader market decline. The company reported EPS of $1.30 on revenue of $57.01 billion, surpassing analyst estimates. Its data center business drove growth, but gaming revenue fell slightly short. CEO Jensen Huang highlighted booming Blackwell sales and the rapid scaling of the AI ecosystem. However, some major investors, including Peter Thiel’s hedge fund and SoftBank, recently sold off their Nvidia holdings. Concerns about companies manipulating earnings through depreciation practices, raised by investor Michael Burry, were seemingly addressed by Nvidia’s CFO, who emphasized the long lifespan of Nvidia’s accelerators.

News Article:

Nvidia Stock Dips Despite Blowout Earnings Report

SAN FRANCISCO – Nvidia (NVDA), the AI chip giant, defied analyst expectations with a stellar third-quarter earnings report and a promising forecast for the current quarter, yet its stock price unexpectedly tumbled 3.15% on Thursday. The downturn mirrored a broader market slump, casting a shadow over the company’s strong performance.

Nvidia reported earnings per share (EPS) of $1.30 on revenue of $57.01 billion, significantly exceeding consensus estimates of $1.26 and $55.2 billion, respectively. The company’s data center business was a major driver, generating $51.2 billion in revenue. CEO Jensen Huang touted the extraordinary demand for Blackwell chips and the rapid expansion of the AI ecosystem. “We’ve entered the virtuous cycle of AI. AI is going everywhere, doing everything, all at once,” Huang stated. For the fourth quarter, Nvidia projects revenue of $65 billion, again exceeding Wall Street’s expectations.

However, not all news was positive. Gaming revenue came in slightly below estimates at $4.3 billion. Furthermore, high-profile investors like Peter Thiel’s hedge fund and SoftBank Group recently liquidated their positions in Nvidia, raising questions about long-term confidence.

The dip also comes amidst growing scrutiny of accounting practices within the tech sector. Famed investor Michael Burry recently accused companies, including Meta and Oracle, of artificially inflating earnings by understating depreciation on data center equipment. Nvidia’s CFO, Colette Kress, addressed these concerns on the earnings call, arguing that the company’s CUDA software allows for extended lifespans for its GPUs, countering claims of rapid obsolescence.

Despite the recent dip, Nvidia’s stock remains up over 37% year-to-date, reflecting the company’s dominance in the burgeoning AI market. Rival AMD also saw gains with its stock price up 82% year-to-date. The market will be watching closely to see if Nvidia can shake off the recent headwinds and maintain its momentum in the face of growing competition and macroeconomic uncertainty.

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