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Despite these positives, Nvidia's stock was down 4%, likely influenced by the unexpected margin forecasts. This decline underscores a broader market sentiment that had anticipated some weakness in the company's outlook, especially given Nvidia's underperformance compared to the S&P 500 over the past month.
Comparisons and Industry Context
Comparing Nvidia's performance to other players in the market, such as Salesforce, which recently faced a downturn after missing expectations, highlights the importance of revenue beats in maintaining investor confidence. For Nvidia, missing on revenue would have resulted in a far more severe downturn, considering its prior stock performance leading into the quarter.