Certain research has shown that investors tend to put too much faith in past earnings. Over time, this leads to a stock being overbought in the lead-up to an earnings release and a short-term dip after the release. What Nvidia is experiencing is very normal.

Nvidia’s monster third quarter, bullish guidance, and multi-trillion dollar potential was not enough to satisfy Wall Street. Similar to what happened last quarter, the world’s largest stock ticked more than two percent lower in overnight trading following the blowout earnings report:

Indian billionaire Adani and others face U.S. fraud charges, Ford is cutting jobs as its EV business continues to face challenges, and more news to start your day.

Nvidia stock dipped immediately after the company released its latest financial results on Nov. 20, but that might be a golden buying opportunity.

"NVIDIA is under pressure to deliver an overwhelming beat to justify its valuation," one commentator said on Wednesday ahead of the earnings report.

Nvidia shares moved higher in premarket trading Thursday after the AI investor favorite released results and an outlook that surpassed Wall Street expectations. Monitor these important chart levels.

The chipmaker is the most valuable company on the S&P 500 index, reporting about $19 billion in profit. But its stock price dipped after Wednesday's earnings report.

Nvidia reports earnings after the close. Forecasts are bullish, but commentators warn that there's little room for error with the stock at record levels.

Prospects of tax cuts and deregulation under a second Trump administration have helped fuel Nvidia’s November rally. Traders remain bullish as ever, shrugging off a report earlier this week about overheating issues with Nvidia’s new Blackwell chips.