The chipmaker reported revenue that came in $3 billion above guidance for the second consecutive quarter and issued outlook that was $5 billion ahead of consensus. Management also guided for growth in every quarter this year, with momentum expected to continue into 2027. Still, shares are up by only 1.2% in pre-market Thursday trade.

"We aren’t sure what else investors want to hear at this point," Bernstein analyst Stacy Rasgon siad.

The muted reaction highlights how elevated expectations have become. Markets have now grown accustomed to Nvidia delivering sizable revenue beats for 14 straight quarters, raising the bar for what qualifies as a true upside surprise.

Still, the print helped ease some near-term anxiety around AI-driven disruption and associated spending. Asian equities rose in a relief rally, although U.S. and European futures edged lower.

Street surprised

Investor sentiment toward the AI trade has turned more selective in recent weeks, with growing scrutiny on returns and sustainability. Analysts increasingly warn that the AI boom is unlikely to lift all technology stocks equally, even as demand for advanced chips remains robust.

Here's what Wall Street analysts have to say about Nvidia's blockbuster earnings report.

Morgan Stanley analyst Joseph Moore: "Largest, cleanest beat and raise in the history of the semis industry - surpassing the second best, which was NVIDIA 3 months ago. Numbers were at the high end of anyone's expectations, based on our conversations, yet the stock reaction after hours was muted. We are surprised at that, though we have highlighted that the bigger debates holding the stock back are longer term in nature. We would continue to argue that the long term also looks pretty good, while conceding that the growth next year will still be somewhat capital markets driven.