NVDA shares declined after its last four quarterly reports despite beating estimates and increasing forward guidance each time.
Nvidia’s stock dropped in each of the past four quarters following earnings releases, including a 1.8% decline on May 21 after reporting first-quarter fiscal 2027 results. The declines occurred despite the company surpassing expectations, raising guidance, and announcing an $80 billion stock buyback program.
Analysts had anticipated strong performance given Nvidia’s dominance in AI and its $5 trillion market cap. The company also boosted its dividend by 2,400% in its latest release, yet investor reaction remained muted or negative.
The pattern suggests markets may be normalizing Nvidia’s outperformance, reducing volatility even as fundamentals improve.