NVIDIA shares fell 4.6% to $217.49 on Friday even after the company beat earnings estimates, a slide that looks like profit-taking after a strong quarter rather than a sign of weaker fundamentals. Fair-value models put the stock's upside at 29.5%, the largest gap among this week's post-earnings decliners.
A drop that looks like profit-taking
NVIDIA reported earnings per share of $2.22 against a $2.08 estimate, with revenue of $96.2 billion versus $91.9 billion expected, yet the stock still slid on Friday. Most other stocks that fell this earnings week did so for good reasons — missed guidance, valuation concerns, or failed deals. NVIDIA's decline, by contrast, follows a strong quarter, which is why the pullback reads as profit-taking rather than a fundamental problem.
Revenue nearly doubled year over year, up 83.4%, driven by AI data center demand. Third-quarter guidance of $108 billion, plus or minus 2%, came in above the $104.2 billion consensus — a figure that excludes China data center sales entirely.
Valuation versus this week's other decliners
At 27.2 times trailing earnings and 22.6 times forward earnings, NVIDIA trades at what the source calls a reasonable premium for a company growing revenue 83% annually. That compares with CrowdStrike, which fell 4.7% and trades at 177.5 times forward earnings despite raising guidance, with fair value estimated at $116.87 against a share price near $217.
Rubrik fell 12% after adjusted net new Cloud ARR grew only 20% year over year, a deceleration that concerned growth investors; it trades at 316.5 times forward earnings with negative earnings. Marvell dropped 9.9%, though the source notes insufficient data for a valuation verdict.
Technical setup shows consolidation
NVIDIA's weekly chart shows a Strong Buy signal with an RSI of 56.9, described as healthy rather than overbought, alongside a positive MACD reading. The daily chart is neutral, with an RSI of 52.2 reflecting brief consolidation after the earnings gap-up.
Key support sits at the weekly S2 pivot of $216.88, then $210.18, while resistance stands at $232 and the 52-week high of $236.54. The stock is holding above its 5-day simple moving average of $215.32 and its 10-day average of $217.05.
Source: Investing.com
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