Nvidia Slips 1.5% Despite 85% Revenue Growth as Investors Doubt New AI Demand

10 articles · Updated · CNBC · May 21

Nvidia shares fell 1.5% on Thursday even after the chipmaker posted blowout quarterly results, extending a pattern of muted reactions to strong earnings.
CEO Jensen Huang argued the market is underestimating demand beyond the big hyperscalers, saying revenue should outgrow their capital spending as newer customers ramp AI infrastructure purchases.
That newer ACIE segment—AI clouds, industrial and enterprise customers—includes neoclouds, sovereign AI projects and on-premise enterprise buyers, where Huang said Nvidia holds nearly 100% of inference demand.
The pitch also addresses a key investor worry that hyperscalers' custom chips will erode Nvidia's lead, because fragmented smaller customers want turnkey, vertically integrated systems rather than designing semiconductors themselves.
Even with that broader growth case, Nvidia trades at about 23 times forward earnings versus AMD at 47, leaving sentiment—not fundamentals—as the main drag on the stock.

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