NVIDIA stock down 5+% on missing quarterly expectations

[erek]

Hard pill to swallow

“Nvidia's revenue forecast for the fiscal fourth quarter is $37.5 billion, lower than some analysts' expectations. Scarlet Fu and Vonnie Quinn break down the results on "Bloomberg The Close."”

View: https://youtu.be/7GHO5PGeLEk?si=VW3z6V4oz-cXl6IG

 

[LukeTbk]

With all the blackwell trouble and delay, sound not bad.

But, whos expectation ?
https://www.cnbc.com/2024/11/20/nvidia-nvda-earnings-report-q3-2025.html

Nvidia said it expects about $37.5 billion plus or minus 2% in current quarter sales, versus $37.08 billion expected by analysts polled by LSEG.
. Nvidia posted $30.8 billion in its data center division, rising 112% from a year ago, while analysts polled by StreetAccount were expecting $28.82 billion in revenue.
https://globalnews.ca/news/10880097/nvidia-third-quarter-2024-earnings-q4-forecast/

Nvidia CEO touts ‘age of AI’ as third quarter earnings beat estimates​

Overnight estimated are only just -1.12%

 

[KazeoHin]

Alternate headlines:

"Investors ignore the fact that perpetual exponential growth is actually impossible"

"In a surprising twist that nobody could ever have foretold, a company learns that it's unprecedented rapid growth was somehow temporary"

"Line no go up, me sad"

 

[erek]

Alternate headlines:

"Investors ignore the fact that perpetual exponential growth is actually impossible"

"In a surprising twist that nobody could ever have foretold, a company learns that it's unprecedented rapid growth was somehow temporary"

"Line no go up, me sad"

And still #1

 

[Sycraft]

Alternate headlines:

"Investors ignore the fact that perpetual exponential growth is actually impossible"

So it has ever been. This is why companies can get real crazy chasing growth because it is never ok to just be successful and make money. You always have to make MORE money... ALL THE MONEY!

I imagine at some point nVidia is in for a big stock crash when the AI craze cools off and more (actual) competitors get in the market. Investors will panic since they are no longer exponentially growing and there'll be a mass selloff. Then later people will realize that wait, they actually are still really profitable and make good highly desirable products and it'll go back up, though probably not to as high as it has gotten, it's a little overheated.

 

[LukeTbk]

"Investors ignore the fact that perpetual exponential growth is actually impossible"

+2% a year composite is exponential growth, the word exponential does not mean much, but even in a hyperbolic internet way, obviously investor know very well that Nvidia grow was impossible to sustain.

Nvidia revenue grew at a 260% rate not so long ago, would it continue at that rate their revenues would have been what quickly above 400 millions of billions (not sure the word for that type of amount) in less than in 10 years ? That much bigger than the world gdp

Price always include the impossible not to happen decline in growth rate, nothing anyone know (specially general finance rules) on a message board would not be known by big investors. That why despite the giant drop in growth rate NVIDIA last 2 result the stock continued to climb, because that decline was always by investor considered inevitable to happen.

For example, last quarter, the news was:

Nvidia Beats Forecasts Again, Even as Growth Inevitably Slows​

Nvidia growth slow was less pronounced that what investor estimated it would slow down.