NVDA: Record Earnings Meet a 17% Pullback
NVIDIA just posted the most dominant quarter in semiconductor history — $68.1 billion in revenue, $43 billion in net income, 73% year-over-year growth — and the stock is down 17% from its high. At $176.12, shares trade below both the 50-day moving average ($185.10) and uncomfortably close to the 200-day ($178.07). The market is telling you something, and it has nothing to do with NVIDIA's execution. The pullback is a re-rating of the entire AI infrastructure thesis. After two years of exponential spending, investors are asking whether hyperscaler capex grows forever or whether demand plateaus once the initial buildout wave crests. NVIDIA delivered a flawless Q4 FY2026 and guided Q1 FY2027 revenue to approximately $134 billion. The stock sold off anyway. That disconnect between fundamentals and price action is the story right now. This is not a broken stock. It is a stock repricing risk in a sector that priced in perfection. The question for investors at $176 is straightforward: does NVIDIA's earnings power justify a 36x multiple when the market no longer gives AI names the benefit of the doubt?