Despite reporting strong quarterly results, NVIDIA's stock plunged more than 5% on Thursday. The company has faced a challenging start to the year due to uncertainties surrounding the trajectory of the artificial intelligence boom.

CEO Jensen Huang stated in an interview with CNBC that investors may be overlooking the potential scale of the computing industry and NVIDIA's capacity for growth within it. Following the earnings release, NVIDIA became the worst performer in the Dow Jones Industrial Average and one of the largest decliners in both the Nasdaq and S&P 500 indexes. The decline pushed the stock back into negative territory for 2026.

The stock drop highlights growing pessimism around NVIDIA and other previously high-flying AI-related stocks, with investors questioning the sustainability of their growth and the broader impact of AI technology. Prior to the earnings report, several Wall Street analysts had warned that NVIDIA faced particularly high expectations due to lofty sales projections for its major tech clients and widespread uncertainty about the AI trend.

Nevertheless, the negative market reaction surprised some analysts, suggesting that skepticism toward AI-related investments and NVIDIA's future role may be deeper than anticipated. Huang expressed confidence that investor sentiment will eventually shift back in favor of NVIDIA. "The market can’t keep us down forever," he remarked.

"We will continue to grow," Huang added. "No matter how you look at it, NVIDIA’s leadership is strengthening every day." Following Thursday's decline, NVIDIA's stock was down roughly 12% from its late-October peak.