Nvidia's stock dropped by 5.2% to $138.25 per share, marking a price correction that occurred after the company beat earnings expectations. Despite reporting a 11.43% increase in EPS for Q3, finishing on October 27th, and a $2 billion revenue estimate beat, the stock's performance appears to have elicited a muted response from investors.
The question arises whether the high demand for AI data centers, which has driven NVDA's stock performance in recent years, will continue to sustain such optimism. The article also notes that AI startups have raised over $150 billion since 2021, with capital growth escalating in the first quarter of 2024. However, there are concerns about the profitability of AI investments and whether the sector could be forming a bubble