Chip giant Nvidia delivered another record-breaking quarter, with first-quarter revenue surging 85% year-over-year to $81.6 billion and net income more than tripling to $58.3 billion. The results beat market estimates, underscoring the continued boom in artificial intelligence infrastructure.
But shares slipped 1.6% in after-hours trading. Analysts say investors have grown accustomed to stellar numbers from the world's most valuable company, valued at roughly $5.3 trillion. CEO Jensen Huang told analysts demand for AI chips has "gone parabolic," driven by the rise of agentic AI. The company forecasts annual AI infrastructure spending of $3 trillion to $4 trillion by decade's end.
Ruth Foxe-Blader, managing partner at Citrine Venture Partners, attributed the sell-off to a "law of large numbers," noting Nvidia now represents 8% of the S&P 500. Victoria Scholar at interactive investor added that many investors "bought the rumor, sold the fact" after shares rallied ahead of earnings. Rising competition from hyperscalers developing their own chips also weighs on sentiment.