Nvidia Does It Again. But the Stock Falters. What Happened?NVIDIA CorporationNASDAQ:NVDATradingView“Great quarter guys,” would be an understatement. Nvidia NVDA delivered what most companies would describe as a generational quarter. Profit surged 94% year over year, reaching $43 billion, while revenue climbed 73% to $68.1 billion, comfortably ahead of consensus estimates. Data center sales alone accounted for $62.3 billion, representing more than 91% of total revenue, as artificial intelligence infrastructure spending continues to define corporate capex across Silicon Valley. Annual revenue crossed the $200 billion mark for the first time in fiscal 2026, and net income for the year reached $120 billion. On paper, it reads like the scoreboard of a dynasty team in its prime and the gem of the earnings season. 📉 So Why the Yawn? Despite the nearly $6 billion revenue surprise and a guidance figure of $78 billion for the current quarter, well above the expected $72.1 billion, the stock barely moved in after-hours trading. When a company approaches a $5 trillion market value, beating expectations becomes routine. Investors start measuring results not against forecasts, but against perfection. 🏋 The Weight of the AI Boom Nvidia sits at the center of the AI trade, no doubt about that. Every hyperscaler expansion, every chatbot launch, every cloud upgrade ultimately runs through its hardware. Its largest customers include OpenAI (private for now), Microsoft MSFT, Meta Platforms META, Alphabet GOOGL and Amazon AMZN . These companies continue to invest aggressively in AI infrastructure, yet markets are beginning to ask a reasonable question. How sustainable is this spending cycle? Concerns around OpenAI’s fundraising capacity and the growing push by large tech firms to design custom chips of their own have added nuance to what once felt like a one-way demand story. 🏗️ Capex Fatigue Creeps In Investors have grown more sensitive to the scale of capital expenditures across the AI ecosystem. Billions flow into data centers, networking equipment and advanced GPUs, and each earnings season brings higher spending projections. That expansion benefits Nvidia today. At the same time, markets wonder how long hyperscalers can continue increasing budgets without demanding stronger returns. To add to that, Nvidia’s reported plan to shift its potential $100 billion OpenAI investment into a more modest $30 billion participation reflects a broader recalibration of ambition. 📊 Expectations as the Real Benchmark Nvidia’s share price dipped to $170 late last year during a broader tech wobble, before recovering to current market prices around $196. The stock remains highly sensitive to sentiment shifts within the AI narrative. The challenge is psychological as much as financial. Each quarter sets a new baseline for excellence. The bar continues rising, and markets adjust expectations accordingly. For a company this large, incremental upside surprises must grow larger to move the needle meaningfully. 🔌 The Memory Chip Angle Another wrinkle involves supply chain dynamics. Memory shortages and component constraints linger in the background. When a business grows at Nvidia’s pace, execution risks carry more visibility. Traders also recognize that competition continues to evolve. Custom silicon efforts by major clients introduce long-term strategic questions, even if near-term demand remains robust. Nvidia delivered extraordinary growth once again. Revenue and profit expanded at rates that would headline any earnings season. Investors admire the numbers but also simultaneously evaluate how long such momentum can persist. Off to you: How do you read the numbers? Happy with the growth we’ve seen or wary of any immediate risks that could cast a shadow on the outlook? Share your views in the comments!