Nvidia shares fell 4% on Friday after slumping 5% in the previous session following the AI chip maker's blowout earnings.

The shares fell 5.5% Thursday -- their largest one-day percentage drop since April 16, 2025, according to Dow Jones Market Data. The price decline also saw $259 billion wiped from Nvidia's market capitalization, the 7th largest one-day market cap loss for any U.S. company.

For its part, the chip-making giant's fourth-quarter earnings were robust -- profits, revenue, and company forecasts all beat Wall Street expectations.

The market reaction, in turn, seems to reveal more about investor sentiment than it does about Nvidia's underlying performance.

"With stocks like Nvidia so consistently beating market expectations, it becomes difficult to know exactly what they have to do to impress the markets," said Scope Markets analyst Joshua Mahony.

Investors have spent the past few months worrying about megacap companies' ambitious capital expenditure plans and, more recently, about how AI might disrupt sectors like software.

Those fears may be lingering Friday as stock market futures were pointing down ahead of the open, with Nasdaq futures 0.5% lower

Nvidia was outperforming the broader market before all of its 2026 gains were wiped out Thursday. The road back to positive territory looks uncertain.