Nvidia Stock Tumbles After Blowout Earnings on China Concerns

Nvidia's stock price surged over 3% after its blowout Q4 earnings report and forecast, but quickly reversed course in overnight trading.

Investors were left questioning the forward trajectory of the AI chipmaker, despite its strong financial numbers. The company reported Q4 sales and profit above market expectations, with revenue in its mainstay data center segment surging 75% to $62.3 billion.

Nvidia also forecast current quarter sales of $78 billion, plus or minus 2%, which was significantly higher than analysts' average estimate of $72.60 billion.

However, the company's comment about the Chinese market may have contributed to the muted reaction from investors. Nvidia CFO Colette Kress said the company is yet to generate revenue from China and was engaged with the U.S. and Chinese governments to secure approval for its H200 chips.

Deepwater Management's Gene Muster noted that the analyst call lacked Nvidia's usual 'early innings' table pounding message, while CNBC's Jim Cramer attributed the slide to management comments about China.