Nvidia Shares Plummet Amid Record-Breaking Quarterly Revenue
Nvidia shares plummeted by 1.8% in after-hours trading on August 26, 2026, following a strong quarterly revenue report of $96.2 billion. The tech giant's total AI-related commitments reached an astonishing $366 billion, with guarantees adding another $108.5 billion to the tally.
The company's revenue for the fiscal second quarter skyrocketed by 106%, exceeding analyst expectations by $3.9 billion. Nvidia's guidance for the October quarter came in at a record-breaking $108.0 billion, surpassing consensus estimates of $104.2 billion.
However, the surge in commitments and guarantees raises concerns about potential risks related to execution, customer credit, and asset utilization. If AI deployment slows down, Nvidia might be left maintaining infrastructure ahead of when customers generate sufficient cash flow.