Nvidia Stock Just Did Something It Has Never Done Before. History Says the AI Stock Could Do This Next.

Nvidia’s monster third quarter, bullish guidance, and multi-trillion dollar potential was not enough to satisfy Wall Street. Similar to what happened last quarter, the world’s largest stock ticked more than two percent lower in overnight trading following the blowout earnings report:

Nvidia shares could be a buy for investors who view these negatives as a temporary interruption to more rapid future growth and higher margins.

Certain research has shown that investors tend to put too much faith in past earnings. Over time, this leads to a stock being overbought in the lead-up to an earnings release and a short-term dip after the release. What Nvidia is experiencing is very normal.

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"NVIDIA is under pressure to deliver an overwhelming beat to justify its valuation," one commentator said on Wednesday ahead of the earnings report.

Nvidia shares moved higher in premarket trading Thursday after the AI investor favorite released results and an outlook that surpassed Wall Street expectations. Monitor these important chart levels.

Nvidia reports earnings after the close. Forecasts are bullish, but commentators warn that there's little room for error with the stock at record levels.

The Jen-Hsun & Lori Huang Foundation saw its assets, which mostly consist of Nvidia shares, more than triple to $3.4 billion at the end of 2023.

The Dow deletion effect suggests Intel might be positioned for outperformance. Yet Nvidia’s AI leadership suggests otherwise. Nvidia replacing longtime member Intel in the Dow Jones Industrial Average earlier this month is more than just a name change.