Is Nvidia a Millionaire-Maker Stock?

After languishing for some time after the company's Q3 earnings, shares of artificial intelligence (AI) juggernaut Nvidia (NASDAQ: NVDA) briefly shot up to nearly $150 before retreating to their current level south of $140.

Some investors were a bit perplexed by the poor performance of Nvidia's stock after its fiscal 2025 Q3 numbers were released. After all, the report was quite positive, so why did the company's shares slip?

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

A lot of anticipation is built into earnings releases, and for a company as successful and high-profile as Nvidia, even success can be read as failure by the market -- at least temporarily. At this point, unless Nvidia completely surprises Wall Street, its stock may struggle in the weeks that follow future releases.

Luckily, this effect weakens over time. It seems the dust has settled and the company's stock is more responsive to good news, which is exactly what Foxconn 's recent earnings were.

Foxconn, a longtime partner of Apple , is also a key partner of Nvidia. The company, despite seeing slight declines in revenue from its smartphone division, posted record fourth-quarter sales thanks to growth in its networking and cloud division, where it does much of its business with Nvidia. The company told investors to expect similar year-over-year growth next quarter.

The numbers are a clear indication that demand for Nvidia's products and artificial intelligence (AI) computing on the whole remains strong.

Foxconn's earnings release comes just a week after Microsoft announced that it expects to spend $80 billion on AI data center infrastructure in its FY 2025. This was huge news for investors, as it confirms that Silicon Valley's AI arms race is not winding down any time soon.