Hyperliquid News Today: Investor Valuation Concerns Trigger Nvidia's 2% Slide as AI Hype Cools

Nvidia (NVDA) shares retreated 2% in early trading Thursday, reversing post-earnings gains as investor enthusiasm for the AI sector appears to cool following a record-breaking quarter. The chipmaker's $57 billion in revenue for fiscal third quarter 2025, up 62% year-over-year according to reports, initially buoyed the stock, but recent volatility reflects growing caution about valuations amid a broader market selloff as reported by the Guardian.

CEO Jensen Huang addressed persistent concerns about an "AI bubble" during the earnings call, emphasizing Nvidia's dominance across AI workflows from pre-training to inference according to Barrons. "Compute demand keeps accelerating and compounding," he said, noting that Blackwell sales are "off the charts" and cloud GPUs are "sold out" according to Seeking Alpha. The data center segment alone contributed $51.2 billion in revenue, a 66% annual increase according to The Verge, driven by hyperscaler investments in AI infrastructure. Analysts highlighted that older chips, such as the six-year-old Ampere generation, remain in high demand, extending depreciation schedules and reinforcing long-term spending visibility according to Barrons.

Despite the strong results, market dynamics shifted quickly. After surging nearly 5% premarket according to Barrons, the stock dipped as investors digested broader risks. The Nasdaq has fallen nearly 3% in November as reported by the Guardian, with Nvidia's 8% decline this month-following a 1,200% rally over three years-reflecting heightened sensitivity to valuation concerns according to Reuters. "There's been a lot of talk about an AI bubble," Huang acknowledged, but he argued the company's ecosystem advantages and software stack create a "virtuous cycle" of adoption according to Seeking Alpha.

Nvidia's guidance for $65 billion in fourth-quarter revenue according to Barrons, above the $61.84 billion consensus according to Seeking Alpha, underscored confidence in its market position. However, the absence of Chinese demand-a market it remains largely locked out of as noted by Quartz-and infrastructure bottlenecks, such as power and land constraints, have raised questions about sustainable growth as reported by Quartz. Meanwhile, competitors like Advanced Micro Devices and Broadcom are gaining traction with alternative offerings, including OpenAI partnerships and hyperscaler-specific chips according to Investing.com.

Analysts remain cautiously optimistic. Melius Research's Ben Reitzes raised his price target to $320 from $300, maintaining a Buy rating according to Barrons, while Bank of America reiterated its $275 target according to Yahoo Finance. BofA projected earnings could exceed $20 per share by 2030 if AI capital spending hits $1.2 trillion according to Yahoo Finance. Yet, the stock's recent pullback highlights the sector's fragility. "The AI trade is no longer a one-way bet," noted one strategist, as investors weigh whether current valuations align with fundamentals according to Quartz.

Nvidia's $4 trillion market cap remains a focal point for the S&P 500, with its performance accounting for a significant portion of the index's gains in 2025 as reported by the Guardian. The company's $37 billion in shareholder returns this year according to Economic Times and $62.2 billion remaining in buyback authorization according to Economic Times aim to sustain investor confidence, but the broader market's correction has amplified scrutiny of its growth trajectory.