NVIDIA Corp NVDA experienced a 2.36% decline in pre-market trading on Thursday, as per Benzinga Pro, despite surpassing Wall Street expectations in its third-quarter earnings.

What Happened: The chipmaker reported a 94% year-over-year increase in revenue, reaching $35.1 billion, exceeding the anticipated $33.12 billion. Additionally, the company’s earnings per share were 81 cents, surpassing the projected 75 cents.

Despite these strong financial results, investor concerns arose due to a slowdown in sales compared to previous quarters. Derren Nathan, head of equity research at Hargreaves Lansdown, told CNBC that the drop in NVIDIA’s stock price suggests that “even outstanding isn’t enough for some investors.”

See Also: Michael Saylor’s MicroStrategy Takes Wall Street By Storm, Becomes Second-Most Traded Stock After Nvidia

Why It Matters: This also comes at a time when seasonal statistics have revealed that December has historically been a challenging month for Nvidia investors. The semiconductor giant of Jensen Huang often enters a temporary bearish phase following its third-quarter earnings report. Historical data indicates that while NVIDIA frequently delivers positive third-quarter earnings, December tends to be a negative month for its stock.

Meanwhile, Wedbush Securities Managing Director Dan Ives described the results as a “jaw-dropper,” emphasizing the transformative potential of the company’s AI technology. “This is the fourth revolution playing out in front of our eyes,” Ives told CNN, highlighting the broader implications for the tech sector.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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