Gene Munster, managing partner at Deepwater Asset Management, recently shared his analysis of NVIDIA Corp.’s (NVDA) earnings and the enormous potential of artificial intelligence via a post on X. He remarked, “The bears will say $NVDA earnings were good but not great.”

### What Happened:
Munster elaborated that the bearish viewpoint considers Nvidia’s earnings to be merely satisfactory rather than exceptional. On the other hand, bullish investors maintain that the company’s promising guidance for July and October is less critical in comparison to the long-term impact of AI, which they believe will eclipse even the advent of the internet.

Despite these perspectives, Nvidia’s stock witnessed a significant 9% decline, comprising a 7% drop in after-hours trading and an additional 2% fall during regular trading hours. Munster interpreted this decline as the market “blowing off some steam” and expressed his optimism regarding the stock’s future performance. He confidently stated, “I continue to believe that this stock will trend higher over the next week.”

### Key Pressure Points:
Munster identified two major factors contributing to market pressure: the Blackwell topic and the timing of achieving a supply-demand equilibrium. He noted that the ramp-up for Blackwell has been postponed by 2-3 months, which could negatively impact revenue projections for the October quarter. Nevertheless, he emphasized that the transformative potential of AI could propel Nvidia’s growth through at least 2026.

### Additional Insights:
Nvidia reported its second-quarter earnings on Wednesday, revealing a more than twofold increase in both revenue and earnings compared to the previous year. The company also provided third-quarter revenue guidance above market expectations and announced a substantial $50 billion stock repurchase authorization.

Jim Cramer, host of CNBC’s “Mad Money,” weighed in on Nvidia’s earnings report. He observed that despite the company’s impressive revenue growth, its stock price experienced a steep drop. Cramer criticized investors who sold off their shares, suggesting they lacked a true understanding of Nvidia’s potential.

### Market Dynamics:
Before Nvidia’s earnings report, Munster had already anticipated a possible dip in the company’s stock due to its recent surge to near all-time highs. He also pointed out ongoing challenges such as the supply-demand imbalance and delays in Blackwell’s rollout as factors that might negatively influence investor sentiment.

### Price Action:
In after-hours trading, Nvidia’s stock fell by 6.89%, closing at $116.95. During regular trading hours, it experienced a 2.10% decline. However, year-to-date, Nvidia has achieved an astonishing 160.76% gain, according to Benzinga Pro data.

### Conclusion:
Gene Munster’s insights underscore the complex dynamics surrounding Nvidia’s stock performance and future potential. While short-term market fluctuations are evident, the long-term transformative power of AI keeps bullish investors optimistic about Nvidia’s growth trajectory.

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