Nvidia shares are down 7% over the week, although quarterly results were quite good.

Last week—within the quarter—Nvidia announced record revenue that exceeded all market expectations and even raised its outlook for the current quarter. Nevertheless, the company’s shares fell almost 7 % over two trading sessions after the results were released. This is the largest price decline since November of last year.

1. Financial Results
Metric | Value
Quarterly Revenue | Record, above expectations
Current‑quarter forecast | More optimistic
Post‑report share price drop ~ 7 %
Year‑to‑date decline ~ 4.2 %

2. Why investors are concerned
1. Peak AI‑infrastructure spending

Companies fear that capital expenditures for building AI infrastructure will reach a peak, after which Nvidia’s revenue growth rate may slow.

2. Chip‑market competition

Alternatives to Nvidia solutions exist:

* OpenAI plans to lease 2 GW of compute based on Amazon Trainium chips (part of the deal in which Amazon invested $50 M).
* However, OpenAI still uses up to 5 GW of Vera Rubin GPUs from Nvidia.
* Additional cloud solutions come from Microsoft, CoreWeave and Oracle.
* A contract with Cerebras covers 750 MW of capacity.

3. Potential shift toward other manufacturers

Meta is considering AMD and Google components as alternatives to Nvidia, which could reduce demand for their graphics processors.

3. Growth forecasts
Period | Expected revenue growth
Current fiscal year | +65 %
Next three years | 30 %, then 13 % and 14 %

4. Investment view

Despite the share decline, some analysts see this as an opportunity to buy Nvidia at a better price, given the company’s long‑term potential.