The shift in investment logic behind NVIDIA's earnings report: Why does 'perfection' trigger a sell-off? 1. The contrast between earnings data and stock performance Last night, NVIDIA (NVDA) released its earnings report, and the numbers were nothing short of flawless. Revenue hit $68.1 billion, up 73% year-over-year, not only far exceeding market expectations but also smashing through the upper limit of the company's guidance. Profits came in at nearly $43 billion, almost doubling. From a fundamentals perspective, this is undoubtedly a textbook-level stellar earnings report. However, in after-hours trading, the stock staged a classic 'Sell the News' scenario—briefly spiking before pulling back, ultimately closing with only a modest 1% gain. Why couldn’t such impressive results drive a significant stock rally? What this reveals is that Wall Street's scoring criteria for NVIDIA and the entire AI industry have undergone a fundamental shift.