Nvidia posted record quarterly revenue of $57 billion, up 62% year-over-year, with Data Center revenue reaching $51.2 billion.
Reddit was split: one camp celebrated the earnings beat, while others highlighted a sudden market selloff that hit NVDA bulls and questioned the sustainability of the AI rally.
Michael Burry criticized Nvidia's $112.5 billion in buybacks as ineffective, arguing they mainly offset stock-based compensation dilution.
The catalyst was clear: Nvidia reported a massive Q3 earnings beat after the closing bell the prior day. Revenue hit $57 billion, a 62% year-over-year surge, while Data Center revenue alone reached $51.2 billion. Headlines from multiple news outlets trumpeted the results — Artificial Intelligence demand, they said, remained insatiable. CEO Jensen Huang emphasized that all of Nvidia's AI cloud GPUs were sold out in Q3. The company also announced broad adoption of its NVQLink technology by global supercomputing centers.
A Trap for the Bulls
Despite the earnings euphoria, Thursday's market session delivered a sharp reversal. The Nasdaq tumbled roughly 600 points in just over an hour, a move that one user on r/wallstreetbets described as a 'crazy trap' for NVDA bulls. Another poster on r/smallstreetbets wondered if Nvidia had just 'pump and dumped Wall Street,' noting that the selloff had wiped out a 'monstrous amount of wealth in a matter of hours.'
The broader market context was unusually tense. A stronger-than-expected jobs report reduced expectations for a December interest rate cut, dampening risk appetite. On r/stocks, users questioned the market's reliance on a single stock, with one asking, 'Surely it can't be healthy that trillions of dollars of portfolios and options bets are turning on the whims of one stock?'
Burry's Buyback Bombshell
Adding to the turbulent sentiment, famed investor Michael Burry posted a detailed critique of Nvidia's capital allocation. On r/stockmarket, a post highlighting Burry's analysis drew over 5,100 upvotes. Burry argued that Nvidia's $112.5 billion in buybacks since 2018 had added 'zero' shareholder value because the spending primarily offset $20.5 billion in stock-based compensation dilution, preventing the share count from rising rather than reducing it. The post noted that while Nvidia generated $205 billion in net income over the period, Burry contended that owner's earnings were far lower due to this dilution effect.
The buyback criticism resonated on other subreddits. On r/stocks, users debating the AI 'bubble' argued that Nvidia's very dominance — 8% of the S&P 500 — made it a systemic risk. One user pointed to Google's Gemini 3 proving it could build large language models without Nvidia chips, suggesting that competition could erode Nvidia's margins.
Sentiment — Positive but Fractured
Sentiment: 53% bullish, 32% bearish, 15% neutral.
Tendie.bot data showed overall NVDA sentiment on November 20 at a moderately positive 0.53. However, the picture varied sharply by subreddit. r/wallstreetbets registered a far more bearish average sentiment of 0.32, reflecting the frustration of bulls caught in the day's market volatility. By contrast, sentiment on r/stocks and r/stockmarket hovered around 0.50, where the earnings beat was weighed against broader market concerns.
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The juxtaposition was striking: Nvidia's revenue was accelerating, its products were sold out, and Jensen Huang was touting three major technological platform shifts. Yet on Reddit, many traders saw a stock that had become too big for its own good, a market that hinged on one name's every move, and a capital-allocation strategy that one legendary investor said was destroying shareholder value.
For now, the AI trade remains the most consequential story in markets — and Nvidia remains its undisputed king. But Thursday's Reddit conversation made clear that even the king inspires as much doubt as devotion.
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