I’ve been in the stock game long enough to know what it means when a stock sells off after earnings beat expectations. In short, numbers don’t matter— The expectation is.
this is exactly what happened NVIDIA (NVDA). The chip giant did what it does best: posted one of its best and largest quarterly results on record.
The results and guidance would make most CEOs blush. NVDA stock still got hammered again and again in the following sessions. What’s the reason? NVDA isn’t just considered an AI game.
Instead, it trades as follows this Artificial intelligence trading must be perfect every time.
Susquehanna analyst Chris Rolland said it best when the earnings were released.
The reason why this quote from Rowland is so popular is that it perfectly sums up what Nvidia is going through right now.
He doesn’t think the story has been ruined. But he does feel like the easy part is over. This is the part where stocks rise because the world “discovers” the need for AI hardware. Those days are gone.
Now we are in a completely different game. What’s the next surprise? What’s the next stop? What’s left that hasn’t been priced yet?
This is the main contradiction that causes headaches for those who are optimistic about Nvidia. Nvidia can still dominate the AI space, and the stock could still be in trouble if Wall Street decides that the “dream scenario” is no longer a scenario but a baseline.
Nvidia bulls were vocal in their warnings following the earnings release. Photography: I-HWA CHENG, Getty Images ·Photography: I-HWA CHENG, Getty Images
Susquehanna Semiconductor Analyst Chris Rowland Heaped praise on the outlook, calling it “monster guidance” and praising Nvidia for weathering the storm better than expected.
But he also delivered lines that captured the moment.
Rowland isn’t saying the AI cycle is over—far from it. He believes the stock has entered a more difficult phase.
At this stage, execution will remain elite, but multiples will become more difficult to scale.
More NVIDIA:
Mathematics is no longer theoretical; NVIDIA COMPLETE February 27 exist $177.19.
Susquehanna sets price target at $250 At NVIDIA. That means meaningful upside. But that’s not the same open runway investors get when the story is just beginning to be re-evaluated.
Simply put, investors are watching the rhythm of the past as they focus on return.
Another big question facing the market is whether Nvidia will continue to pour money into growing the AI ecosystem rather than repaying shareholders first.
Here are some pressure points to keep in mind:
The ROI question is getting louder. As artificial intelligence construction matures, the market is now beginning to focus on “enterprise return on investment.”
Hyperscalers are spending…but also building. Hyperscaler (including Nvidia’s major customer Meta) forecasts Capital expenditures of at least US$630 billion in 2026mainly used in data centers and processors. At the same time, they also invest in Custom silicon.
The stock was hit hard enough to make headlines. Nvidia’s decline on February 26 translated into approx. Single-day market capitalization of US$259 billion According to Barron’s.
The main reason the debate is intensifying is that Nvidia has fallen from its heyday.
NVIDIA, located in 24.5x expected earningsdown from previous highs and trading below the forward multiples of some peers, is showing clear signs of wear.
That supports Both Both sides of the argument.
Bulls can say, “P/E ratios are cooling, but fundamentals remain hot.”
Skeptics could say, “The market is starting to view Nvidia as an established technology leader rather than a hot startup.”
If Nvidia wants to resume its “can’t miss” stock trend, one of the following stock catalysts needs to come back again.
Guidance continues to rise from $78 billion baseline. Merely meeting the guidance is not enough. Nvidia needs to excel.
Margins need to stay sticky. This is true even as Nvidia is developing its next-generation platform. Gross margin guidance is again 75%.
Investors need proof of sustained spending. Hyperscalers need to stay the course, ramp up capital expenditures, and companies need to demonstrate measurable ROI.
Customer diversification is accelerating. Custom chips and other accelerators may be growing faster than expected.
Supply chain issues resurfaced in the form of “restrictions” on shipments. Rolland singled out memory availability as something worth paying attention to.
The market wants to bring more investment returns to shareholders, not more ecosystem building.
Here are some of the more noteworthy conference calls and target changes that occurred during the earnings window recently.
wedbush Raise target price to From $300 From $230 and retained a Outperform Rating (February 26).
Rosenblatt Raise target price to $300 and maintained purchase Rating (February 26).
Royal Bank of Canada Capital Raise target price to From $250 From $240 and kept Outperform Rating (February 26).
DA Davidson reiterate positive stance $250 target, even if the stock is sold off.
key bank reiterated its bullish view and highlighted the continued growth story in data centers.
truth capital Upgrade Nvidia to Buy and hold with a $250 Pre-report price target.
Related: Goldman Sachs analysts have shocking message for Circle after blowout quarter
This article was originally published by TheStreet on March 3, 2026, and first appeared in the Investment section. Click here to add TheStreet as your preferred source.
