Nvidia Corp. has reported better-than-expected results, but the company is facing scrutiny from investors due to a significant increase in its share price over the past two years.
Analysts are particularly concerned about the revenue forecast for the current quarter, which fell short of expectations by $400 million. This is the second consecutive quarter where Nvidia's sales projections have failed to meet the average analyst estimate by $1 billion or more. The slower growth rate raises doubts about the sustainability of Nvidia's rapid expansion, which has been a major factor in its stock performance.
As the company deals with this situation, investors are closely watching its ability to maintain momentum in a competitive market.