Nvidia (NVDA) reported its Q4 earnings on Feb. 25 after the bell. Despite the earnings smasher, the stock is trading 5.6% lower at the time of writing, Thursday, Feb. 26, according to Yahoo Finance.

The stock’s crash after earnings, no matter how strong the report, has seemingly become the norm for Nvidia. So how can stock slide after reporting record quarterly revenue of $68.1 billion, up 20% sequentially, and up 73% year over year?

Nvidia CEO Jensen Huang explained this phenomenon at the all-hands meeting after the Q3 earnings. “If we delivered a bad quarter, it is evidence there’s an AI bubble. If we delivered a great quarter, we are fueling the AI bubble,” he said, as reported by Business Insider.

It is important…