By Jon Smith
Publication Date: 2026-05-22 06:01:00
The Nvidia (NASDAQ:NVDA) fell 1% in post-market trading after its results were released late Wednesday (20 May). Even though it was a modest move, it made the fourth consecutive quarter in which the stock had fallen immediately after results were released.
Yet given the strong headline numbers, is the stock worth buying on this dip?
Running through the details
Nvidia reported fiscal Q1 revenue of $81.6bn, up 85% year on year. Given its market cap of over $5trn, that’s pretty impressive. Adjusted earnings per share also came in well ahead of analyst expectations. Looking ahead, the company guided for next-quarter revenue of approximately $91bn. Again, this was ahead of analyst estimates.
Therefore, the fall isn’t a result of poor performance. However, it does speak to the fact that investors have become accustomed to exceptional quarters, in which management not only smashes forecasts but obliterates them. This time, while the results were excellent, they perhaps weren’t spectacular enough to satisfy a market priced for perfection.
Another factor that caused some concern is profit margins. While Nvidia maintained gross margins around the 75% range, some investors are nervous about the cost of ramping production of its next-generation Blackwell AI chips. Blackwell demand is clearly enormous, but newer chips are more complex and expensive to manufacture. That creates concerns that margins may gradually tighten over…
