Why the Market Loved Walmart’s Earnings, But Not Nvidia’s

Group 1: Nvidia - Nvidia reported record revenue of $57 billion for Q3 fiscal 2026, marking a 22% increase from the previous quarter and a 62% year-over-year surge, driven by strong AI chip demand [2][4] - Data center revenue reached $51 billion, a 66% increase year-over-year, while gross margins slightly narrowed to 73.4% from 74.6% a year ago [4] - Despite exceeding expectations, Nvidia's shares fell approximately 4% post-report, reflecting broader tech sector concerns [2][5] Group 2: Walmart - Walmart's revenue hit $179.5 billion, a 6% year-over-year increase, with e-commerce sales soaring 27% [3][6] - U.S. comparable sales growth eased to 4.5% from 5.3% last year, but every segment saw over 20% gains, particularly in advertising, which surged 53% following the Vizio acquisition [6] - Walmart's stock rallied over 4% after the earnings report, indicating positive investor sentiment [3][6] Group 3: Market Context - The contrasting market reactions to Nvidia and Walmart's earnings reports illustrate that strong financial results do not always guarantee positive stock performance, as market sentiment plays a crucial role [3]