Nvidia reported $57B in Q3 revenue, surpassing estimates by $1.8B. Data Center revenue grew 66% YoY to $51.2B. The company has a $500B backlog for 2025 and 2026. Investors are cautious about Nvidia and AI stocks amid market fluctuations post-earnings release. Operating cash flow increased significantly.

Despite strong Q3 metrics, Nvidia stock plummeted after initial gains. Concerns over AI’s future, inventory surge, and market sentiment drove the decline. There’s uncertainty over AI companies’ sustainability and diminishing returns. Hyperscalers’ balance sheet deterioration raises red flags for the industry.

Nvidia’s success in Q3 didn’t save the market, attributed to macro and technical issues. The AI sector faces skepticism about its future profitability and sustainability. Hyperscalers’ cash balances declining indicate a potential slowdown. The market is divided on the timeline of AI demand decline.

Nvidia CEO remains optimistic about demand despite industry concerns. The company has a $500B backlog for 2025-2026. While demand may decline, Nvidia’s fundamentals are strong. Investors may consider diversifying holdings amidst market volatility. Retirement planning may require reevaluation based on changing financial landscapes.

Read more at Yahoo Finance: Nvidia’s Q3 Earnings Trounced Expectations. Here’s Why Wall Street is Still Selling