Crypto & Forex February 26, 2026 0 Comments

Nvidia’s Earnings Crush Estimates — But Here’s Why Investors Are Fleeing Despite the Win!

Isn’t it wild how Nvidia, the titan behind AI chips that practically power our future, can shatter expectations with jaw-dropping revenue growth — only to see its stock drop 5% the very next day? You’d think a 73% year-over-year surge in Q4 revenue and a $215.9 billion full-year haul would have investors celebrating, right? But no — the market’s got its jitters, grappling with whether the AI spending spree is a marathon or a sprint. Even with cloud giants like Alphabet and Amazon pumping billions into AI infrastructure, there’s this looming question: are those dollars going to pay off anytime soon, or is there a bubble ready to pop? It’s a classic case of “love-hate” in the semiconductor sector, and the ripple effect hit Broadcom, Micron, and AMD too — all feeling the pinch as tech shares dragged down major indexes. So, what gives? Is this stumble a reality check, or just a blip on the AI revolution’s radar? Let’s dive deeper. LEARN MORE

Nvidia, the leading supplier of AI chips, saw its shares slide 5% today as semiconductor stocks came under renewed selling pressure.

The company reported yesterday an earnings beat that surpassed investor estimates, with fourth quarter fiscal 2026 revenue reaching $68.1 billion, up 73% year over year.

For the full fiscal year, Nvidia generated $215.9 billion in sales, a 65% increase from the prior year. Management projected quarterly revenue of $78 billion going forward, exceeding Wall Street estimates that had forecast figures below $72.3 billion.

The earnings beat initially pushed the stock above $200 in post-market trading as investors reacted to the stronger guidance. However, shares opened lower today and continued to slide throughout the session, closing at $184.8, down more than 5%.

The stock’s weakness reflects investor concerns about the durability of enterprise AI spending rather than any shortfall in financial performance. While major cloud providers such as Alphabet and Amazon continue to ramp up capital expenditures, investors are increasingly questioning the pace of AI infrastructure investment and its near term return profile.

Other semiconductor names faced similar pressure. Broadcom fell 3.5%, Micron declined 3%, and AMD dropped 3.4% during the session.

The broader market also weakened, with the Nasdaq Composite retreating 1.2%, the Dow Jones Industrial Average shedding 0.4%, and the S&P 500 declining 0.5% as technology shares weighed on sentiment.