Nvidia Falls 2% as Market Sells Off Despite AI Strength

Nvidia NVDA shares fell 2% on Wednesday as technology stocks dropped during a broad market selloff. The Dow lost about 711 points, the S&P 500 fell 1.2% and the Nasdaq declined 1.6% on the session. Analysts pointed to strong AI-driven demand in data centers, the company’s fiscal Q1 revenue and its expansion into CPUs as context for the stock’s movements.

Nvidia reported fiscal first-quarter revenue of $81.6 billion, an 85% increase from a year earlier and a sequential rise of $13.5 billion. The data-center segment accounted for $75 billion of revenue, up 92% year over year and 21% sequentially. Within the data center business, computing revenue reached $60 billion and networking revenue climbed to $15 billion, nearly three times the level from the prior-year period. Company management attributed much of the strength to demand for its Blackwell architecture.

The jump in networking revenue reflects Nvidia’s push to sell integrated systems that combine processors, networking technologies, software and system architecture. The company has expanded offerings that package chips with networking and software to serve AI deployments and increase the range of products it sells to cloud providers and large customers.

Nvidia is also expanding into central processing units. Management estimates the CPU opportunity at about $200 billion and expects roughly $20 billion of CPU revenue this year. Executives say the CPU effort targets workloads shifting from model training toward inference and autonomous AI agents.

Analyst Vinay Utham reiterated a Strong Buy rating and raised his base-case price target to $311, noting the quarter showed growing diversification within the data-center business and reduced customer concentration risk. Utham highlighted Nvidia’s Vera CPU and the RTX Spark initiative as components of a broader CPU–GPU ecosystem that could add revenue across training, inference, networking and future agentic applications.

Wall Street’s consensus rating on Nvidia remains Strong Buy. The average analyst price target stands at $303.71, implying about 46% upside from the stock’s recent close of $208.64; the highest published target is $500. Nvidia trades at roughly 25.4 times forward earnings, and analysts project earnings growth of more than 88% in fiscal 2027 and about 34% in fiscal 2028.

While the session’s selloff reduced Nvidia’s share price, several analysts kept positive ratings and raised targets, citing demand for AI infrastructure and the company’s expanding product lines beyond GPUs.