Nvidia Stock Just Did Something It Has Never Done Before. History Says the AI Stock Could Do This Next.

On Nov. 20, Nvidia reported financial results for its fiscal 2025 third quarter, showing stunning 94% year-over-year revenue growth. The business is absolutely booming, and so is the stock price. As of this writing,

“The mix” of Nvidia’s strong earnings beat was “more heavily skewed” toward the third quarter and therefore the company’s outlook “was only ‘in-line’ with investor expectations, which is “a deviation from prior quarters,” explained Deutsche Bank analyst Ross Seymore in a note to clients.

Certain research has shown that investors tend to put too much faith in past earnings. Over time, this leads to a stock being overbought in the lead-up to an earnings release and a short-term dip after the release. What Nvidia is experiencing is very normal.

Nvidia’s monster third quarter, bullish guidance, and multi-trillion dollar potential was not enough to satisfy Wall Street. Similar to what happened last quarter, the world’s largest stock ticked more than two percent lower in overnight trading following the blowout earnings report:

Artificial intelligence plays Taiwan Semiconductor and Tradeweb Markets lead this week's list of stocks to watch. Nvidia chipmaker Taiwan Semiconductor is basing, while Tradeweb closes in on a buy point near record highs.

Nvidia's predictable revenue and guidance patterns make it difficult to surprise the market. Click here to find out more about NVDA stock here.

Nvidia stock dipped immediately after the company released its latest financial results on Nov. 20, but that might be a golden buying opportunity.

US tech giant Nvidia is spreading its investments into smaller-cap AI companies, which will help promote the adoption of its products. This comes as demand for its graphics processing units (GPUs) is on an increase and projected to remain firm supported by continued adoption of the AI technology across sectors.