NVIDIA shares fell sharply in after-hours trading Thursday, despite reporting earnings that exceeded Wall Street expectations, pulling down broader market indices that had rallied earlier in the day. The stock closed down 5.05% at $184.89 in after-hours trading, according to Google Finance, after closing at $194.82 during regular market hours.
The Nasdaq Composite, which had risen 1.26% to close at 23,152 during the day, and the S&P 500, up 0.81% at 6,946, both saw gains moderate as investors reacted to the NVIDIA results. The Dow Jones Industrial Average also finished higher, up 0.63% at 49,482, while the Russell 2000 closed at 2,663, up 0.41%.
NVIDIA’s fourth-quarter revenue reached $57.01 billion, a 62.49% year-over-year increase, while net income totaled $31.91 billion, a 65% increase. The company’s data center revenue saw a substantial 75% increase, driven by demand for its artificial intelligence chips. Despite the strong figures, investors appeared to be weighing concerns about the sustainability of such rapid growth and the broader implications for the AI sector, according to Yahoo Finance.
The mixed reaction to NVIDIA’s earnings comes as traders shift their focus to upcoming economic data and commentary from Federal Reserve officials, with a March rate cut now appearing unlikely. Treasury yields were mixed on Wednesday, with the 30-year bond closing at 4.70% and the 10-year note at 4.05%.
Elsewhere in the markets, oil prices rose amid reports that Saudi Arabia was increasing oil production in anticipation of potential U.S. Action against Iran. Brent Crude closed at $70.85, up 0.11%, while West Texas Intermediate finished at $65.63, up 0.32%. Natural gas also saw gains, closing at $2.97, up 1.85%.
Gold edged higher to $5,181, up 0.33%, while silver closed flat at $89.03. Cryptocurrency markets experienced a broad rally, with Bitcoin regaining ground above $69,000 after a recent period of selling pressure, trading at $68,180 at 8 AM EST, and Ethereum trading at $2,069.
Wall Street analysts issued a range of upgrades and downgrades on Thursday. Alcon Inc. (NYSE: ALC) was upgraded to Overweight at Wells Fargo, while First Solar Inc. (NASDAQ: FSLR) was downgraded to Hold at Deutsche Bank. Oddity Tech Ltd. (NASDAQ: ODD) received a downgrade to Neutral from JPMorgan, and Trade Desk Inc. (NASDAQ: TTD) was downgraded to Sell at New Street.
