Nvidia stock fell 3.6% in two trading sessions after reporting 85% sales growth to $81 billion, despite beating estimates and forecasting $1 trillion in revenue from 2025 through 2027.

Nvidia reported an 85% increase in sales to $81 billion for the third straight quarter of accelerating sales, with gross margin greater than 74%, and reiterated its forecast for Blackwell and Vera Rubin systems to generate $1 trillion in revenue from 2025 through 2027.

Despite strong earnings, Nvidia stock fell a total of 3.6% in the two trading sessions following the report, as investors may view this as a long growth story with no need to rush into the stock rather than a sign of disappointment in earnings performance.

Nvidia faces growing competition from other chip designers and cloud companies developing their own chips, and has not yet been able to relaunch AI chips in China due to ongoing export controls and import restrictions.