Certain research has shown that investors tend to put too much faith in past earnings. Over time, this leads to a stock being overbought in the lead-up to an earnings release and a short-term dip after the release. What Nvidia is experiencing is very normal.

Nvidia’s monster third quarter, bullish guidance, and multi-trillion dollar potential was not enough to satisfy Wall Street. Similar to what happened last quarter, the world’s largest stock ticked more than two percent lower in overnight trading following the blowout earnings report:

Nvidia shares could be a buy for investors who view these negatives as a temporary interruption to more rapid future growth and higher margins.

Nvidia's Q3 2024 earnings exceeded expectations, but there are concerns over Blackwell chip issues and inventory shifts. Check out my analysis of NVDA stock.

Nvidia shares moved higher in premarket trading Thursday after the AI investor favorite released results and an outlook that surpassed Wall Street expectations. Monitor these important chart levels.

Global stocks eased on Thursday after AI bellwether Nvidia's revenue growth forecast failed to excite investors, while the dollar firmed and bitcoin hit a record high, buoyed by hopes about U.S. President-elect Donald Trump's policies.

What Nvidia investors should know about earnings.

If the still-rapid growth of artificial intelligence isn’t pushing the market higher right now, something else will have to do it.