By Dan Gallagher
Nvidia hasn't had any problem putting up strong numbers for a while now. Impressing investors is another matter.
Nvidia's stock price has fallen the day after its last three quarterly reports. This comes despite the fact that the company's results have beaten Wall Street's estimates in each of those periods, as has the quarterly revenue forecast given in each of those reports. Nvidia's last report in February included a revenue projection that beat analyst estimates by 8%-the widest such beat in two years, according to FactSet data. The stock still slumped more than 5% the following day.
There are many potential reasons, including the fact that a company valued above $5 trillion is already so widely held that additional upside is increasingly hard to come by.
But whatever the reason, Wall Street seems to be bracing for a repeat performance when Nvidia posts its fiscal first-quarter report after Wednesday's closing bell. UBS analyst Tim Arcuri said "we sense a marked apathy on this stock" in a report last week. Ross Seymore of Deutsche Bank said "investors seem to find little discovery value in Nvidia's impressive growth and prefer to target incremental investments toward perceived share gainers."
The latter is a clear reference to stocks like Intel. The one-time chip making king has seen its stock price nearly triple in the past three months compared with Nvidia's 18% gain in that time. That is due to enthusiasm for the growing role that the company's CPU chips could play in a shifting AI market. But Intel is also now valued at 95 times projected earnings compared with Nvidia's multiple of 24 times. Even with a market cap of $5.4 trillion, Nvidia may start appealing to bargain hunters.
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(END) Dow Jones Newswires
May 20, 2026 13:30 ET (17:30 GMT)
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