Nvidia beat earnings estimates and raised guidance, but stock fell 2% as investors had already priced in strong growth.

Nvidia reported fiscal first-quarter revenue of $81.6 billion, up 85% year over year and up 20% sequentially, with data center revenue hitting $75.2 billion. Management forecast fiscal second-quarter revenue of $91 billion, plus or minus 2%.

Data center networking revenue jumped 199% from a year earlier to $14.8 billion, indicating customers are building out full systems beyond just purchasing graphics processing units (GPUs). Non-GAAP adjusted earnings per share rose 140% year over year, with gross margin at 75% and free cash flow reaching a record $48.6 billion.

This marks the fourth consecutive quarter in which Nvidia stock has declined after a beat-and-raise quarter. The muted reaction reflects that shares had already climbed about 20% off their February low and were trading at a price-to-earnings ratio in the mid-40s before the report, leaving little room for surprise.