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...

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