Why did NVIDIA's stock fall after a blockbuster earnings report?

NVIDIA reported revenue of $81.615 billion（約13兆円）, up 85.23% year over year, but shipped zero H20 Data Center units to China this quarter, with forward guidance assuming zero shipments continue. The market may be pricing in platform durability concerns and China headwinds rather than the absolute earnings beat.

What makes Micron's business different from NVIDIA's in AI infrastructure?

NVIDIA sells the compute (GPUs and networking like NVLink), while Micron sells the memory that feeds those GPUs. Micron's Cloud Memory revenue reached $7.75 billion（約1.2兆円） at a 66% operating margin, and the company is the only U.S.-based memory manufacturer, which matters for sovereign AI buyers. Its order books reportedly stretch into 2027.

What is the biggest risk both companies face?

A softening in hyperscaler capex guidance later in the year is the one variable that pressures both NVIDIA and Micron stories at once, since both depend on large cloud providers' willingness to invest in AI infrastructure buildout.

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AI Stocks & Markets

NVIDIA and Micron both posted blockbuster AI infrastructure quarters, but the market rewarded them opposite ways—NVIDIA's stock fell 10.38% while Micron surged 127.9%—reflecting different bets on where AI hardware spending lands in 2026.

Yahoo Finance AI6h ago6 min read

Key takeaway

NVIDIA and Micron both posted record AI infrastructure quarters in early 2026, but the stock market diverged sharply—NVIDIA fell 10.38% while Micron jumped 127.9%—signaling different investor confidence in their growth trajectories. NVIDIA's dominance in GPU compute is facing China headwinds and carries a premium valuation (P/E near 32), while Micron's critical role supplying memory for AI accelerators appears undervalued by the market (forward P/E of 11), despite order books stretching into 2027. The divergence reflects a bet on whether platform lock-in or memory scarcity will drive returns.

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3 Key Points

What happened
NVIDIA reported Q1 FY27 revenue of $81.615 billion（約13兆円）, up 85.23% year over year, with Data Center revenue at $75.246 billion（約12兆円）. Micron reported Q2 FY26 revenue of $23.86 billion（約3.8兆円）, up 196.29%, with Cloud Memory revenue reaching $7.75 billion（約1.2兆円） at a 66% operating margin. Since reporting, NVIDIA shares fell to $200.04 while Micron rose to $1,051.77.
Why it matters
NVIDIA's earnings show the scale of AI infrastructure buildout, but the market is pricing in platform durability and China headwinds (zero H20 Data Center shipments this quarter, with forward guidance assuming that stays at zero). Micron's beat signals that memory scarcity is real and persistent; the company's forward P/E of 11 suggests the market still treats it as cyclical despite order books stretching into 2027, whereas NVIDIA's P/E sits near 32. Both stories share a shared risk: softening in hyperscaler capex guidance later in the year could pressure both.
What to watch
NVIDIA guided Q2 revenue to $91.0 billion（約15兆円） and Q3 to $33.50 billion（約5.4兆円）; Micron is guiding gross margin to approximately 81%. Polymarket traders give Micron a 95.2% probability of beating quarterly earnings, while NVDA's near-term crowd consensus clusters at $195 to $210. The key variable is whether NVIDIA's $119 billion（約19兆円） in supply commitments converts cleanly and whether Micron's gross margin actually reaches its guided level.

FAQ

Why did NVIDIA's stock fall after a blockbuster earnings report?: NVIDIA reported revenue of $81.615 billion（約13兆円）, up 85.23% year over year, but shipped zero H20 Data Center units to China this quarter, with forward guidance assuming zero shipments continue. The market may be pricing in platform durability concerns and China headwinds rather than the absolute earnings beat.
What makes Micron's business different from NVIDIA's in AI infrastructure?: NVIDIA sells the compute (GPUs and networking like NVLink), while Micron sells the memory that feeds those GPUs. Micron's Cloud Memory revenue reached $7.75 billion（約1.2兆円） at a 66% operating margin, and the company is the only U.S.-based memory manufacturer, which matters for sovereign AI buyers. Its order books reportedly stretch into 2027.
What is the biggest risk both companies face?: A softening in hyperscaler capex guidance later in the year is the one variable that pressures both NVIDIA and Micron stories at once, since both depend on large cloud providers' willingness to invest in AI infrastructure buildout.

Discussion

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