Aspectus Group's Tim Focas: Nvidia's stock plunge amid goliath growth

Dangers of being 'priced for perfection'

clock • 3 min read

In the quicker than quick tech sector, where innovation drives markets and companies redefine the future daily, no firm has positioned itself at the centre of the artificial intelligence revolution more than Nvidia.

The company's recent earnings report is nothing short of spectacular — revenue has more than doubled in the past quarter, surging to $30bn. Nvidia's earnings per share of $0.68 also outpaced the expected $0.65. Despite these stellar numbers, Nvidia's stock tumbled over 8% in after-hours trading. The question is, how did this happened? The answer lies in the increasingly precarious nature of being priced for perfection, a scenario where even extraordinary performance fails to meet the sky-high expectations of investors. Nvidia's share price had been soaring in anticipation of its...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Companies

Microsoft and Meta shares dip as results fail to meet investors' expectations on AI delivery

Microsoft and Meta shares dip as results fail to meet investors' expectations on AI delivery

S&P 500 and Nasdaq both fell

Sorin-Andrei Dojan
clock 31 October 2024 • 3 min read
Columbia Threadneedle merges UK small-cap unit into European smaller-cap team

Columbia Threadneedle merges UK small-cap unit into European smaller-cap team

Catherine Stanley and Gordon Happell leave

Sorin-Andrei Dojan
clock 31 October 2024 • 1 min read
Odey Wealth Management files for voluntary liquidation

Odey Wealth Management files for voluntary liquidation

Evelyn Partners appointed as liquidator

Cristian Angeloni
clock 28 October 2024 • 1 min read
Trustpilot