Nvidia reported Q4 revenue of $39.33 billion, up 78% year over year and 12% higher than revenue generated in the previous quarter. This result topped the company's previous guidance of $37.5 billion. It also exceeded the average estimate of $38.05 billion among analysts surveyed by LSEG.

Nvidia (NASDAQ: NVDA) shares tumbled 8.5% Thursday, closing at $120.15, despite reporting better-than-expected Q4 earnings and revenue guidance. The drop, Nvidias largest since January, was driven by profit-taking

Nvidia's Q4 beat EPS/revenue, but falling margins and high GPU TCO raise concerns. See here to know why we are bearish on NVDA stock and rate it a sell.