Nvidia’s stock is quickly rebounding from its steep post-earnings selloff and has recaptured its $3 trillion market capitalization.

Many analysts and investors were bracing for the worst after NVDA stock fell 8.5% on Feb. 27, the day after it delivered its latest quarterly financial results. The sharp one-day decline wiped nearly $275 billion from the company’s value and pushed its market cap down to $2.94 trillion.

However, after initially falling further in early trading on Feb. 28, the last trading day of the month, NVDA stock closed 4% higher on Friday, pushing its market cap back to $3 trillion. Apple is the only other publicly traded company with a market capitalization above $3 trillion.

Perception Problem?

Some analysts expressed surprise at the selloff in Nvidia’s stock, coming as it did after the chipmaker reported financial results that beat Wall Street forecasts across the board, including a 78% year-over-year rise in its sales and an 80% increase in its profits.

The company’s data center revenue, which includes its microchips that power artificial intelligence (AI) workloads, soared 93% on an annual basis to nearly $36 billion. Nvidia also signaled that production issues for its next-generation Blackwell microchips have been resolved.

Analysts attributed the immediate post-earnings selloff to investor concerns about the potential impacts of export controls, tariffs, and more efficient AI models out of China. Despite the recent drawdown, Nvidia is still worth five times more than it was two years ago at the start of the AI boom. The company’s market capitalization first hit $3 trillion in June 2024.

NVDA stock is currently down 7% on the year.