NVIDIA slides 4.63% after earnings

Nvidia sold off even as the rest of Big Tech basically confirmed the AI boom is still on. That sounds backward, but the market’s logic was pretty(finance.yahoo.com)phabet, and Amazon are going to keep pouring absurd amounts of money into AI infrastructure in 2026. But they also got a reminder that this spending wave does not automatically translate into a straight line up for Nvidia’s stock. (finance.yahoo.com) ### Why did Nvidia fall? The immediate move was simple — Nvidia dropped about 4.7% over the week ending May 1, closing at $198.45 after trading as low as $197.12 that day. This happened ri(invezz.com)d, but they also pushed investors to rethink the next phase of the AI trade. (finance.yahoo.com) ### Weren’t those earnings good for Nvidia? Yes — on the surface, very good. Microsoft, Meta, Alphabet, and Amazon all signaled higher AI infrastructure spending. The updated read across those four companies puts 2026 capex near $725 billion, up from estimates around $670 billion before the reports. If you(finance.yahoo.com)any selling the most important AI chips. (finance.yahoo.com) ### So what spooked investors? The catch is that investors are no longer just tracking spending totals. They are tracking where that spending(finance.yahoo.com)on, trying to control costs, reduce dependence on Nvidia, and optimize specific workloads. That does not mean Nvidia is losing the AI race. But it does mean the market is less willing to assume every extra dollar of AI capex flows neatly into Nvidia revenue. (invezz.com) ### Why does custom silicon matter so much? (finance.yahoo.com)s the fattest share of the economics. If Microsoft or Google can shift even part of their AI buildout toward in-house chips, margins and long-term market share become the real debate — not whether AI demand exists. (invezz.com) ### Is Nvidia’s business actually weakening? Not from the numbers we have. Nvidia’s most recent reported quarter — fiscal Q4 2026, released(invezz.com)3 billion. Full-year revenue hit $215.9 billion. Jensen Huang also framed demand as still accelerating, especially around inference and enterprise adoption. So this selloff looks more like expectation management than a collapse in fundamentals. (nvidianews.nvidia.com) ### Why did Microsoft and Meta matter so much here? Because they showed(invezz.com)6 capex should reach $190 billion, including $25 billion from higher component pricing. Meta raised its range to $125 billion-$145 billion. That tells investors the AI buildout is expanding, but also that costs are rising and returns will be scrutinized harder. (finance.yahoo.com) ### What is the market debating now? Ba(nvidianews.nvidia.com)er part is “Nvidia captures enough of that explosion to justify a multi-trillion-dollar valuation while customers get smarter, bigger, and more self-sufficient.” That is a much tougher question — and the stock is starting to trade like investors know it. (invezz.com) ### Bottom line? Nvidia did not fall because AI spending cooled. It fell because AI spending got more complicated. The market now believes the boom is real. What it is pricing, day by day, is who keeps the leverage as that boom matures. (finance.yahoo.com)