Why did it surge 9% after earnings, only to plunge 4.57%?
After Nvidia's earnings report was released, its stock price surged about 9% in after-hours trading, but then quickly gave up those gains and fell 4.57%, dropping back below $200. The report itself continued to demonstrate strong demand for AI computing power. However, the market had already built up substantial optimistic expectations beforehand. Investors are starting to shift their focus from 'is there growth?' to 'can the growth continue to surpass these extremely high expectations?'
AI Demand Remains Strong, But the Market Is Starting to Scrutinize Valuations
The Data Center business remains the core growth engine, supported by new-generation products and AI infrastructure investments. However, Nvidia's high valuation means any guidance slowdown, supply constraints, or changes in gross margins will be magnified. The sharp volatility post-earnings indicates the bullish thesis hasn't disappeared, but the stock price requires stronger order visibility and profit realization to continue expanding its valuation.
After Losing $200, $190 Becomes a Key Support Level
Technically, $200 is both a psychological barrier and a crucial level for short-term capital to gauge strength or weakness. After breaking below it, the market will focus on whether effective support can form around $190. If $190 fails, the earnings gap and lower support levels may be tested. If the price quickly recovers above $200, it would suggest the selling pressure primarily came from profit-taking rather than a fundamental reversal.
The All-Time High Depends on the Next Round of Order Fulfillment
For Nvidia to challenge its all-time high again, it will require continued growth in AI capital expenditure, successful mass production of the next-generation architecture, and stable gross margins. Retail investors with a short-term focus should pay close attention to the recovery above $200 and the support at $190, rather than just looking at the headline earnings. Only by reclaiming and holding above $200 on significant volume will the logic for a new all-time high regain dominance; consistently trading below it warrants caution against further volatility driven by high valuations.
