Why Nvidia’s Investors Are So Hard to Please

Nvidia investors are, let’s face it, a bit like spoiled children. Here’s a company that posts a 94% increase in revenue from a year ago, which is quite a bit better than it had projected, and the stock falls! Sure, Nvidia’s growth rate has come down from the blazing-fast 260% or so of a few quarters ago, but did anyone imagine the company could maintain that pace?

The chip designer, which has a stranglehold on the much-in-demand specialized chips used in artificial intelligence development, on Wednesday reported third-quarter numbers that were about as good as could be hoped. Selling chips for data centers, the key part of Nvidia’s AI business, generated about $30 billion in the quarter, the vast bulk of the company’s revenue of $35 billion. Net profit doubled to $20 billion.