NVIDIA Stock Price Tumbles Despite Record Earnings Amid Oversupply Concerns

NVIDIA's stock price has plummeted by 17.7% since reaching an all-time high of $236.54 on May 14, despite posting record earnings and revenue growth.

The company's fiscal first quarter 2027 results saw a 85% year-over-year increase in revenue to $81.6 billion, with a gross margin of 75%. NVIDIA also announced an $80 billion buyback authorization and a 25-times dividend hike.

However, since the May 20 earnings release, NVDA shares have continued to decline, with some attributing this to oversupply in the market. The B200 GPU rental price index has collapsed by 31% to $4.22 a unit in the last three weeks, down from $6.11.

Another headwind is China, where NVIDIA's data center revenue from mainland China for fiscal Q1 2027 was effectively zero, compared to $4.6 billion one year earlier. The US Commerce Department has also closed a regulatory loophole that allowed Rubin and Blackwell chips to be sold in China via offshore subsidiaries.

NVIDIA insiders have also been selling stock, with over $410 million worth of shares sold in the last three months. This adds to institutional selling and may be contributing to the lack of recovery in NVDA's stock price.