Tom Lee Says Nvidia Just Broke Wall Street's Most Unusual Pattern
Nvidia (NVDA) jumped 8.74% on August 27 after a record quarter. Fundstrat's Tom Lee says the chipmaker almost never rises on good earnings.
Lee calls the reaction proof that the market is healthy. However, the gains only lasted one day, and Nvidia fell 4.57% on Friday to $217.55.
A Pattern Nvidia Rarely Breaks
Nvidia has beaten Wall Street estimates for years. The stock still fell after each of its last four reports. It went into this one cold, and shares slid seven sessions in a row from August 14 to August 24, dropping from $225.30 to $208.48.
Then the numbers landed, and Nvidia's post-earnings reversal carried the stock to $227.98, adding roughly $440 billion in market value in one day.
The quarter was not close. Revenue hit $96.2 billion, up 106% from a year ago. Nvidia guided the current quarter to $108 billion.
Why the Rest of the AI Trade Lagged
Lee thinks it was a funding problem. Investors who owned too little Nvidia had to sell something else to buy it.
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