The AI giant reported earnings that surpassed Wall Street’s expectations.
Feb 26, 2026, 11:35am EST Nvidia ’s stock declined on Thursday despite the world’s largest company reporting record profits and revenue through its latest quarter, a worrying sign that concerns over an AI bubble persist despite the chipmaker’s upbeat results.
CFOTO/Future Publishing via Getty ImagesShares of Nvidia dropped 4.5% to around $186.75 as of Thursday afternoon, marking the largest intraday decline for the stock so far this year.$68.1 billion in quarterly revenue and $1.62 earnings per share, beating consensus analyst estimates of $66.1 billion and $1.54, respectively, according to FactSet, after data revenue increased 75% year-over-year to a record $62.5 billion. The chipmaker also forecast $78 billion in revenue in its current fiscal quarter, well above analyst estimates of $72.6 billion. A stock decline for Nvidia following its earnings came as a surprise to economists: Morgan Stanley analysts wrote in a note that Nvidia’s report was the “largest, cleanest beat and raise in the history of the industry,” but HSBC said, despite the company’s strong results, it may have been “lacking new narratives” for investors. “The stock response suggests investors were left wanting more,” JPMorgan analysts wrote, adding they believed the downturn might be tied to “continued uncertainty” around the growth of Nvidia’s data center business.Nvidia CEO Jensen Huang, who holds about 3% equity in Nvidia, had his net worth cut by $7 billion to $162.6 billion as of Thursday’s share price. Huang ranks the eighth-richest person in the world, just ahead of Amancio Ortega and behind Bernard Arnault , according to Forbes’ Real-Time BillionairesConcerns from investors and analysts about a potential AI bubble, which would be caused by overspending that inflates stocks above their fair value, have persisted over the last year. In a survey of credit investors released by Bank of America earlier this week, 23% of respondents viewed an AI bubble as their top concern, up from 9% from December. In a separate Bank of America survey of fund managers earlier this month, about 30% said they believed increased spending on AI could result in a credit crisis. Alphabet, Amazon, Meta and Microsoft projected a combined spending of $610 billion for the year, with each of the “Magnificent Seven” members citing rising demand for AI products. Capital expenditures forecasts have beaten expectations, WedBush Securities analysts wrote this week, and Cantor Fitzgerald said investor worries persist about AI spending despite “insatiable” demand for computing power, which Nvidia helps provide.
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