Sometimes even perfection isn't good enough. Nvidia Corp. (NVDA) delivered a monster quarter this week—$57 billion in revenue and $1.30 per share in earnings, both crushing Wall Street estimates. And yet, the Invesco QQQ Trust (QQQ) and the rest of the mega-cap tech universe still fell apart.
The broader tech sector bled more than $800 billion in market value this week, marking the worst selloff since April. Valuation anxiety reared its head again, and the "AI bubble" narrative that bulls spent months dismissing suddenly doesn't seem so crazy anymore.
Looking ahead, all eyes turn to upcoming inflation and labor reports, which will shape expectations around the Federal Reserve's next rate-cut decision. Meanwhile, traders are watching closely to see if the mega-cap tech stocks that have carried the market for months can finally hand the baton to the broader market.
The Winners This Week
Let's start with the good news, because there was some.
Nvidia (NVDA) reported third-quarter revenue of $57.0 billion, up 62% year-over-year and comfortably ahead of the $54.88 billion Street consensus. Earnings per share came in at $1.30, beating expectations of $1.25. That marks Nvidia's 12th consecutive "double beat"—a streak that would be the envy of any company on the planet.
CEO Jensen Huang wasn't shy about the momentum, declaring that "Blackwell sales are off the charts" and forecasting fourth-quarter revenue between $63.70 billion and $66.30 billion, well above analyst estimates of $61.48 billion. Translation: demand for Nvidia's next-generation AI chips remains insatiable, and the company sees no signs of slowing down.
The ripple effects showed up in the high-performance computing and AI data-center space. Stocks like IREN Ltd. (IREN), Riot Platforms Inc. (RIOT), and Cipher Mining Inc. (CIFR) surged following Nvidia's blockbuster results. These companies are essentially leveraged bets on Nvidia's dominance in data-center infrastructure, and when Nvidia wins big, they tend to follow.
Elsewhere, Webull Corp. (BULL) posted a strong third quarter, with revenue of $156.94 million—up roughly 55% year-over-year and topping estimates of around $135.58 million. Adjusted earnings per share came in at $0.07, crushing the consensus of $0.02. Perhaps most impressive, total customer assets climbed 84% to $21.2 billion, signaling that retail traders are still very much in the game.
Other bright spots included Oddity Tech, which soared on a Q3 earnings beat, and Quantum Computing, whose shares jumped after the company announced it would unveil its Neurawave computer this week. Rocket Lab also saw its stock surge Thursday on positive momentum.
The Losers This Week
Now for the carnage.
Netflix Inc. (NFLX) has dropped about 11% since reporting third-quarter earnings, and the decline deepened this week as analysts raised red flags about the company's M&A ambitions, intensifying competitive pressure from rival streaming platforms, and lingering uncertainty about how quickly its advertising business will scale. Netflix isn't in crisis mode, but investors are clearly questioning what the next growth chapter looks like.
Home Depot, Inc. (HD) cut its full-year profit forecast, citing a stalled housing market and weak consumer demand for larger discretionary projects—especially those requiring financing. The company noted that housing turnover has hit a 40-year low of just 2.9%, which is a fancy way of saying people aren't moving, and if they're not moving, they're not renovating. Call it the "renovation recession."
LifeMD Inc. (LFMD) had an especially rough week. The telehealth company posted a third-quarter adjusted loss of $0.07 per share, worse than the estimated loss of $0.05, and reported revenue of $60.17 million, missing the roughly $62 million consensus. Then came the real gut punch: LifeMD slashed its full-year revenue outlook to $192-193 million from an earlier range of $268-275 million. Fourth-quarter revenue guidance came in at just $45-46 million versus expectations of around $63 million. Investors didn't take it well.
Nokia's stock dropped after the company announced a restructuring plan and updated profit targets, while Peter Schiff issued fresh warnings about MicroStrategy's so-called "death spiral," arguing that the company's dividend strategy could vanish overnight. And as Fed rate-cut hopes faded, the tech selloff resumed in earnest, with Palantir heading for its worst month since 2023.
What It All Means
This week underscored a tough reality: even stellar earnings can't shield tech stocks from broader market concerns about valuation, interest rates, and whether the AI boom has gotten ahead of itself. Nvidia's numbers were objectively excellent, but the stock—and the sector—still got hammered.
The question now is whether this is a healthy correction or the start of something uglier. With inflation and labor data on deck, and the Fed's next move still uncertain, volatility probably isn't going anywhere soon. Buckle up.
