“It’s no longer just a matter of beating estimates. The market is expecting estimates to be broken, and the magnitude of today’s surge seems somewhat disappointing,” said Matt Britzman, senior equity analyst at Hargreaves Lansdowne.
Such high expectations come as the company's valuation has soared nine-fold in less than two years as it dominates the AI chip market.
Profits surged during the period, with operating income up 174% to $18.6 billion compared to the same period last year.
Nvidia has posted seven straight quarters of earnings that have surpassed analysts' expectations for both revenue and profit.
“Generative AI will revolutionize every industry,” said Nvidia CEO Jensen Huang.
These results occurred quarterly, sparking a stock-buying frenzy on Wall Street.
According to the Wall Street Journal, a “viewing party” was planned in Manhattan, and Ms. Huang, known for her signature leather jacket, was dubbed “the Taylor Swift of tech.”
Alvin Nguyen, a principal analyst at Forrester, told the BBC that both Nvidia and Huang had become “the face of AI”.
Mr. Nguyen said that while it has helped the company so far, it could also hurt its value if AI doesn't work out after companies have invested billions of dollars in the technology.
“A thousand use cases for AI aren’t enough. We need a million.”
Nguyen also said Nvidia's first-mover advantage means it has market-leading products, customers have been using them for decades and a “software ecosystem.”
He said rivals like Intel could “eat” Nvidia's market share if they develop better products, but that would take time.
