Nvidia beat Wall Street expectations on earnings handily. The stock rallied in post-market trading, but is now falling. Shares overall this year are far outpacing the Nasdaq.
Nvidia reported first-quarter earnings after the closing bell Thursday, and it beat Wall Street's expectations handily. The stock initially rallied in post-market trading, up more than 1% to above $264 a share, before falling 2% to roughly $254 a share.
Nvidia earned an adjusted $2.05 per share, beating analysts' estimate of $1.66 according to Bloomberg. Revenue came in at $3.21 billion, beating the estimate of $2.9 billion.
Perhaps its most impressive business segment, gaming revenue grew 68% year-over-year. Founder and CEO Jensen Huang made particular note of Nvidia 's gaming revenue. "Our datacenter business achieved another record and gaming remained strong," he said in the company's press release. He added: "We had a strong quarter with growth across every platform.
Nvidia's stock hit an all-time high of $260.50 a share during normal hours of the trading session, up more than 1% on the day. The stock gained 34% this year through Thursday’s close, far outpacing the Nasdaq Composite’s 7% rally.
Nvidia is not the only stock to be met by a lukewarm share-price reaction even after strong earnings. Most S&P 500 companies have topped earnings forecasts this season, but as of Wednesday, these companies outperformed the market the day after by just 0.5% on average, according to Wells Fargo.