On Thursday, Jim Cramer and Gene Munster said Nvidia Corporation's (NASDAQ:NVDA) long-term AI growth remains strong even after the stock dipped following its earnings report.
Nvidia Stock Slips After Strong Earnings Beat
Nvidia shares closed down 1.77% at $219.51 on Thursday, one day after the company reported first-quarter results that topped Wall Street expectations. The stock edged slightly higher in after-hours trading.
The AI chip giant reported revenue of $81.615 billion for the quarter, up 85% year over year and ahead of analysts' estimates of $78.796 billion.
Adjusted earnings came in at $1.87 per share, beating expectations of $1.76 per share.
Nvidia also issued strong second-quarter guidance, forecasting revenue between $89.18 billion and $92.82 billion, above Street estimates of $86.62 billion.
Gene Munster Calls Post-Earnings Moves ‘Noise'
Ahead of Thursday's trading session, Deepwater Asset Management managing partner Gene Munster downplayed the importance of short-term market reactions after earnings.
"I have a bad habit of trying to guess what a stock will do the day after earnings," Munster wrote on X. "It’s a bad habit because post-earnings trading has so much noise, it tells us almost nothing about the actual fundamentals."
At the time, Munster predicted that he expected Nvidia shares to rise modestly despite premarket weakness.
Jim Cramer Says Nvidia's Pattern Remains Intact
CNBC's Jim Cramer also weighed in on Nvidia's post-earnings trading pattern, arguing that investors remain focused on the company's long-term trajectory between quarterly reports.
"There’s no breaking this Nvidia pattern. It’s all about the between earnings period now," Cramer said on X.
He also suggested Nvidia should aggressively expand shareholder returns, writing that the company "must buy a ton of stock and increase that dividend aggressively."
Nvidia announced an additional $80 billion share repurchase authorization and raised its quarterly dividend from 1 cent per share to 25 cents per share beginning with its June 2026 payout.
According to Benzinga Edge Stock Rankings, Nvidia ranks in the 98th percentile for Growth, with the stock maintaining a positive trend across short, medium and long-term price trends.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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