Goldman Sachs: Nvidia Reports Strong Earnings but Shares Fall 4.5%

Goldman Sachs pointed out that Nvidia's revenue grew by 73% year-on-year, and the company gave an optimistic outlook for its artificial intelligence business. However, its stock price still fell by 4.5%, dragging down the semiconductor sector and the S&P 500 index. Analysts believe this reflects a "sell the news" trend, profit-taking, and concerns about the sustainability of AI capital expenditures by hyperscale cloud service providers. AI spending is expected to grow by 62% in 2026, lower than the 73% in 2025, but supply-demand imbalances and strong balance sheets may still push expectations higher. Current data center demand and memory bottlenecks provide support for Nvidia, and the market is focusing on whether capital expenditures will peak in 2027.