Nvidia Stock Just Did Something It Has Never Done Before. History Says the AI Stock Could Do This Next.

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Expectations were sky-high and some fatigue may have crept in over Nvidia’s rocket-like trajectory but make no mistake: this was a remarkable quarter, burnished by fantastic execution and a sound plan.

Certain research has shown that investors tend to put too much faith in past earnings. Over time, this leads to a stock being overbought in the lead-up to an earnings release and a short-term dip after the release. What Nvidia is experiencing is very normal.

Nvidia’s monster third quarter, bullish guidance, and multi-trillion dollar potential was not enough to satisfy Wall Street. Similar to what happened last quarter, the world’s largest stock ticked more than two percent lower in overnight trading following the blowout earnings report:

Nvidia shares moved higher in premarket trading Thursday after the AI investor favorite released results and an outlook that surpassed Wall Street expectations. Monitor these important chart levels.

Nvidia reported fiscal third-quarter earnings after Wednesday's closing bell. MarketWatch will be breaking down the results.

"NVIDIA is under pressure to deliver an overwhelming beat to justify its valuation," one commentator said on Wednesday ahead of the earnings report.