When I wrote two days ago, I predicted Nvidia’s earnings. I was pessimistic about how the market would take Nvidia’s all-important report. My prediction was that Nvidia would have a soft beat, which would force a selloff of their stock, but leave the rest of the market “slightly down/flat.” Turns out, I was almost exactly on the money, which is always nice.

The S&P was down 0% today, the Nasdaq 0.23%, Nvidia 6.2%, and my account was up 0.70%. So I was EXACTLY correct, which is awesome. This article will not be a brag session because anybody could have seen that result coming, but it will be a brief analysis of the earnings and the market reaction.

First, the earnings numbers themself: Nvidia earned 68 cents per share, up from the predicted 64 cents, and up 152% from the previous year. Revenue was up 122% from a year prior, topping $30 billion. Side note, any company seeing revenue growth of 122% y/y is usually a micro-cap, but the second-largest company in the world seeing that growth is so wildly unprecedented, it is hard to put into terms. All this growth was primarily driven by data center revenue, which was up 154% from a year prior, shooting over $26 billion. Nvidia projected $32.5 billy in revenue next quarter, which would be 80% higher than the previous quarter. Without any market bias or context, this was an extremely good quarter for Nvidia, and if I owned Nvidia stock, I would be pumped.

Now, with context. Nvidia’s quarter was still spectacular. The expectations were just too high. They were way, way too high. Nvidia had to project next quarter's revenue of at least $34 billion to fully appease Wall Street, and even that may not have been enough. Nvidia’s growth story is likely over, at least to the degree people have been used to for the past year or so, but that does not make it a bad company.

Nvidia is still growing its revenue at an insane clip, and chips are not going anywhere. From now until the foreseeable future, computer chips will be absolutely crucial to every single major piece of technology. Nvidia’s Blackwell GPU is the next major, major piece of innovation that I believe, will ignite this company’s revenue, even though the chip’s release was pushed off a smidgen, and operating costs increased as they rush this chip out.

But really, this was the best-case scenario for the broader market. Nvidia losing some of its sheen, but the market not freaking out is so great. I think much of the AI hope was concentrated in Nvidia for a while, in a situation where the market could only go up if Nvidia went up. Obviously, that is unsustainable, and I am glad that appears to have been broken to some degree. I was getting pretty tired of the entire market seizing for the five days preceding Nvidia’s earnings.

The Nvidia hype was a combo of an insane company and very little supply. There were too few AI plays, but as time goes on, the amount of companies with a piece of AI growth will explode. ServiceNow, I believe, is a good, early bet.

TL;DR: Nvidia’s earnings were amazing, but market expectations were unachievable. Nvidia earnings will hopefully not be quite as “This needs to go well, or I lose my house” from here on out.