Shares of Nvidia have dipped by almost 10% following their Q4 earnings report. Despite its strong double digit revenue growth, it fell short of estimates by around $200mn. Google cloud revenue, on the other hand, fell short of estimates despite growing by 30%.
The tech giant intends to invest $75bn on AI capital expenditure, far exceeding expectations of $60bn. Investors are worried that this could lower margins for the following year. Appropriately, the loss in confidence has resulted in the shedding of the share price. However, when viewing this in context, other tech giants are also significantly bolstering CapEx spending to remain competitive. Microsoft intends to invest $80bn by the end of the fiscal year.
I think this dip represents a good buying opportunity for medium to long term investors. Short term volatility will be inevitable as investors process the news, but further progess will be made in the future for the stock.
drewtalksmoney 
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