Nvidia Shares Fall 4% After Record Earnings Report—Investors ‘Left Wanting More’

Forbes Business

by Ty Roush, Forbes Staff

February 26, 2026

AI-Generated Deep Dive Summary

Nvidia's stock dropped 4.5% on Thursday despite reporting record profits and revenue, surprising investors and economists. The chipmaker exceeded Wall Street expectations with $68.1 billion in quarterly revenue and $1.62 earnings per share, marking a 75% year-over-year increase. However, concerns about an AI bubble and investor fatigue may have contributed to the stock's decline. While Nvidia's forecast for $78 billion in current-quarter revenue exceeded analyst estimates, some analysts noted a lack of new growth narratives, leaving investors wanting more. The earnings report highlighted strong demand for AI-powered products, particularly in data centers, which drove Nvidia's success. However, these results did little to alleviate fears about potential overvaluation in the AI sector. Bank of America surveys indicate growing investor anxiety about excessive spending on AI technologies, with some fearing a potential bubble. This sentiment was reflected in the stock market's reaction, as investors appeared uncertain about the sustainability of Nvidia's growth despite its record-breaking performance. Nvidia's CEO, Jensen Huang, saw his net worth decrease by $7 billion to $162.6 billion following the stock drop. The broader implications of this decline suggest investor skepticism toward AI-driven spending. While major tech companies like Alphabet and Amazon are projected to spend heavily on AI this year, concerns about overinvestment persist. Analysts at Cantor Fitzgerald noted that while demand for computing power remains insatiable, worries about future profitability and market saturation are significant. This development underscores the delicate balance between innovation and caution in the tech industry. Nvidia's earnings report, though impressive, serves as a reminder of the risks associated with rapid growth and reliance on emerging technologies like AI. For business readers

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Originally published on Forbes Business on 2/26/2026