NVIDIA’s stock fell 4.6% to $217.49 on Friday, paring gains after a strong earnings report that pushed its market capitalization to $5.51 trillion. The chipmaker reported adjusted earnings per share of $2.22, beating the $2.08 estimate, while revenue reached $96.2 billion, exceeding the $91.9 billion consensus. Year-over-year revenue growth accelerated to 83.4%, with gross margins holding at 74.7% and return on equity at 117.2%.
The company’s forward price-to-earnings ratio stands at 22.6x, below its trailing multiple of 27.2x, as analysts project sustained earnings power. Technical indicators remain constructive, with the stock trading above its 5-day and 10-day simple moving averages at $215.32 and $217.05, respectively. Weekly support levels are marked at $216.88 and $210.18, while resistance sits at $232 and the 52-week high of $236.54.
NVIDIA’s Q3 revenue guidance of $108 billion, with a 2% margin of error, exceeded the $104.2 billion consensus and excluded China data center sales entirely. Fair-value estimates from analysts average $281.50, implying a 29.5% upside from current levels. Forward targets suggest potential gains of 38.2%, though valuation metrics for peers like CrowdStrike and Rubrik remain stretched. CrowdStrike, which also beat earnings and raised guidance, saw its stock drop 4.7% on Friday despite a fair-value estimate of $116.87 versus a then-current price near $217. Rubrik fell 12% after reporting adjusted net new Cloud ARR growth of 20% year-over-year, while Marvell declined 9.9% with limited valuation context provided.
The pullback in NVIDIA shares followed broader profit-taking in the semiconductor sector after a week of earnings releases, with some investors attributing the move to valuation adjustments rather than fundamental concerns.
