Shares of Nvidia fell on Wednesday even though the company reported some pretty impressive third-quarter earnings figures after the bell on Tuesday—including a whopping 206% year-over-year revenue increase to $18.12 billion. This topped consensus estimates of $16.1 billion, and yet Nvidia stock was down roughly 2% the day before Thanksgiving. It could have to do with the chipmaker’s lofty pre-earnings valuation. Nvidia shares have been riding the AI hype train and are now “disconnected from reality,” according to a top analyst whose skepticism breaks from many boosters in the field.
Most experts on Wall Street cheered Nvidia’s latest earnings report, however. Wedbush tech analyst Dan Ives, in a Tuesday note, argued the company’s strong earnings are evidence that AI is the most important tech theme since the birth of the internet, calling CEO Jensen Huang “the Godfather of AI.” And Deepwater Asset Management’s Gene Munster, another veteran tech analyst, said in a video webcast that “the bottom line is Jensen presented the proper case that this AI party can continue.”
