Nvidia Stock Just Did Something It Has Never Done Before. History Says the AI Stock Could Do This Next.

The company's third-quarter numbers were stunning, as it nearly doubled its revenue from the prior year. However, its guidance wasn’t as strong as some analysts had expected.

Certain research has shown that investors tend to put too much faith in past earnings. Over time, this leads to a stock being overbought in the lead-up to an earnings release and a short-term dip after the release. What Nvidia is experiencing is very normal.