Nvidia shares fall 16% as investors demand growth beyond AI earnings

Shares of Nvidia Corp. dropped about 16% after reaching a record high of $235 on May 14, wiping roughly $1 billion from its market value in less than two months. Investors are questioning whether the recent AI-fueled rally can be sustained and are warning that impressive earnings may no longer be enough to keep the stock rising.

The company posted quarterly revenue of $81.6 billion, an 85 % year‑over‑year increase, with data‑center revenue of $75.2 billion. It guided the next quarter to around $91 billion in revenue and a gross margin near 75 %. According to Mihailo Gjurgjević, vice‑chair of the investment committee at Senzal Global Equity Fund, “the days when an excellent quarter automatically drove the stock higher appear to be over… investors now expect revenue that significantly exceeds forecasts for a strong market reaction.”