:max_bytes(150000):strip_icc()/GettyImages-2246882074-8dd6d1bc8c5444f5bb769f1f5a931a85.jpg?ssl=1 "Nvidia’s Business Is Booming. Its Stock Is Falling. What Gives?")
By Learn about our
Publication Date: 2025-11-25 12:00:00
Key Takeaways
- Nvidia shares have fallen since the company reported quarterly earnings last week that easily beat estimates. The stock has been hit by concerns that tech giants are overspending on artificial intelligence infrastructure.
- Reports that Meta is in talks to use Google’s custom AI chips added to concerns that Nvidia’s dominance in the market could be challenged.
Nvidia blew past high expectations when it reported quarterly results last week. Its stock is getting hit anyway.
Shares of the chip giant are down more than 8% since it reported record quarterly revenue and earnings and offered up an outlook that easily exceeded Wall Street’s expectations. As of Tuesday, the stock is trading about 17% below its record high from late October, when optimism about the AI boom helped make Nvidia the world’s first $5 trillion company last month.
Since then, it’s been among the stocks hit hardest by concerns about an AI bubble.
Why This Is Important
For the better part of three years, Nvidia’s earnings have been treated as a barometer for AI demand. The stock’s recent underperformance despite last week’s solid results reflect Wall Street’s shifting sentiment regarding the AI boom.
Some investors are worried that hyperscalers like Microsoft (MSFT) and Oracle (ORCL) will be left with a glut of data center capacity—and, potentially, piles of debt—if AI demand falls short of expectations. Others argue that, even if demand is as strong as Silicon Valley…
