Hyperliquid News Today: Nvidia Drops 2% Amid Investor Worries Over Valuation as AI Enthusiasm Fades

Nvidia (NVDA) stock slipped by 2% in Thursday's early session, erasing its post-earnings rally as excitement for AI stocks appears to wane after a record-setting quarter. The chip giant reported $57 billion in revenue for its fiscal third quarter of 2025, marking a 62% increase from the previous year

, which initially lifted shares, but recent swings suggest investors are becoming more cautious about high valuations amid a wider market downturn .

During the earnings call, CEO Jensen Huang addressed ongoing speculation about an "AI bubble," stressing Nvidia's leadership in every stage of AI—from pre-training to inference

. "The demand for computing power continues to grow rapidly," he stated, highlighting that Blackwell sales are "exceptional" and cloud GPUs are "completely booked" . The data center division alone generated $51.2 billion in revenue, up 66% year-over-year , fueled by major investments in AI infrastructure by hyperscalers. Experts also pointed out that older chips, like the six-year-old Ampere line, are still highly sought after, which is extending depreciation periods and supporting long-term spending visibility .

Although Nvidia delivered robust results, market sentiment shifted quickly. The stock jumped nearly 5% before the market opened , but later fell as investors considered broader risks. The Nasdaq has dropped almost 3% so far in November , and Nvidia's 8% slide this month—after a 1,200% surge over three years—shows increased sensitivity to valuation worries . "There's been a lot of talk about an AI bubble," Huang admitted, but he argued that Nvidia's ecosystem and software platform foster a "self-reinforcing cycle" of adoption .

Nvidia is forecasting $65 billion in revenue for the fourth quarter

, topping the consensus estimate of $61.84 billion , reflecting its confidence in maintaining its market lead. Still, the lack of demand from China—a market where Nvidia remains largely excluded —and infrastructure challenges like power and land shortages have raised concerns about the sustainability of its growth . Meanwhile, rivals including Advanced Micro Devices and Broadcom are making headway with competing products, such as chips tailored for hyperscalers and collaborations with OpenAI .

Analysts remain cautiously positive. Ben Reitzes of Melius Research increased his price target to $320 from $300, keeping a Buy rating

, while Bank of America reaffirmed its $275 target . BofA also projected that earnings could surpass $20 per share by 2030 if AI-related capital expenditures reach $1.2 trillion . Nevertheless, the recent dip in Nvidia's stock highlights the sector's vulnerability. "The AI trade is no longer a one-way bet," one strategist commented, as investors question whether current prices are justified by fundamentals .

Nvidia's $4 trillion market valuation continues to be a major influence on the S&P 500, with its performance contributing significantly to the index's gains in 2025

. The company has returned $37 billion to shareholders this year and still has $62.2 billion authorized for buybacks , aiming to maintain investor trust, though the broader market correction has intensified scrutiny of its growth outlook.