Goldman Sachs: Nvidia's Strong Earnings Report Fails to Halt Stock Decline, Profit-Taking Pressure Emerges

BlockBeats News, February 27th, Goldman Sachs pointed out that despite NVIDIA's (NVDA.O) 73% year-on-year revenue growth and optimistic guidance for the AI business outlook, NVIDIA's post-earnings performance fell by 5.5%, dragging down the semiconductor sector and the S&P 500.

Analysts said that this reflects a "sell-the-news" market, profit-taking, and concerns about the sustainability of capital expenditure on AI by hyperscale cloud providers. AI spending in 2026 is expected to grow by 62%, lower than 73% in 2025, but supply-demand imbalances and a strong balance sheet could still raise expectations. Current data center demand and memory bottlenecks support NVIDIA, and the market focus is now turning to 2027, when capital expenditure may peak. (FX675)