By Howard Smith
Publication Date: 2026-02-26 16:31:00
Nvidia CEO Jensen Huang plans to extend the company’s leadership even further.
Investors eagerly awaited fiscal fourth-quarter earnings from Nvidia (NVDA 5.55%) yesterday. The artificial intelligence (AI) leader didn’t disappoint. Nvidia beat estimates and provided guidance well above most expectations.
Why, then, are shares lower by 4.4% as of 11:11 a.m. ET today? The answer is an interesting one and provides investors with a good reason to potentially take advantage of today’s dip.
Image source: Nvidia.
Are great margins a bad thing?
Nvidia’s quarterly revenue reached a record $68.1 billion, marking a 20% increase from Q3 and a 73% rise compared to the same period last year. Even more promising was the company’s guidance for about $78 billion in revenue for the current quarter. That would represent another amazing quarter with 77% year-over-year revenue growth.
So it’s hard to explain why Nvidia shares are dropping after the update. That kind of growth is unheard of for a company this large. Nvidia’s market cap is over $4.5 trillion, after all. It remains highly profitable, with gross margins at about 75%. That might be what’s making investors sell, though.
Today’s Change
(-5.55%) $-10.85
Current Price
$184.72
Key Data Points
Market Cap
$4.8T
Day’s Range
$184.32 – $194.26
52wk Range
$86.62 – $212.19
Volume
14M
Avg Vol
169M
Gross Margin
70.05%
Dividend Yield
0.02%
Investors seem to think it’s all too good to be true. Those excellent margins effectively have nowhere to go but down. But…
