Nvidia Tumbles After Earnings Beat

Nvidia's latest quarterly earnings report shows another strong performance for the company. Revenue increased by 106% and adjusted earnings grew by 120%, far surpassing Wall Street estimates of 87% revenue growth and 108% adjusted earnings growth.

This is Nvidia's 15th consecutive quarter beating consensus earnings estimates, but despite this impressive streak, the stock has actually dropped an average of 4% in the month following each of the last eight quarterly reports.

Analysts are divided on the company's valuation, with some questioning the sustainability of AI spending and others seeing undervaluation. The median target price of $318 per share implies a 46% upside from Nvidia's current stock price of $217.