0755 ET - Nvidia's initial after-hours selloff following 1Q results reflects the heightened expectations of investors, Benchmark analyst Cody Acree says in a note. "We do not view the reaction as reflective of any specific investor disappointment with the results or guidance," Acree says. "Rather, in our opinion, the more likely explanation is that investors have simply become increasingly complacent in their expectations of Nvidia's outsized execution, making almost any degree of outperformance look like a normal course business rather than a catalyst for a positive re-rating." The quarter was very strong, he adds, but the central debate is whether already-elevated AI infrastructure expectations can keep moving higher fast enough to support additional upside for the stock. Nvidia is flat in premarket trading. (elias.schisgall@wsj.com)

(END) Dow Jones Newswires

May 21, 2026 07:55 ET (11:55 GMT)

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