Nvidia (NASDAQ:NVDA) has been one of the best stocks to own over the last five years. But things might be starting to change.

The company reported some very impressive earnings on Wednesday (20 May) but the stock didn’t really move. So is that a sign it’s time to sell?

Results

The results for what Nvidia calls Q1 2027 (the three months ending 26 April 2026) were very strong. Revenues jumped 85% from the previous year to $81.6bn.

That’s obviously strong. But more importantly, sales growth has been accelerating over the last few quarters – including this one.

Source: Fiscal.ai

Earnings per share were $1.87 – up 140%. It’s also worth remembering that this figure now includes stock-based compensation expenses.

Data centres – the bit associated with AI — grew 92%. And that’s divided roughly evenly between public cloud providers and AI specialists.

Looking ahead, Nvidia is expecting Q2 revenues to be 94% higher than last year. And new products like Vera Rubin are on track for Q3.

That all sounds very good. So why isn’t the stock moving?

Why hasn’t the stock moved?

Nvidia posted strong results and impressive guidance, but the stock didn’t move. Where have we seen that recently in the stock market?

The answer is software. Businesses are reporting impressive earnings, but the market – literally – isn’t buying it.

It’s not that investors don’t think results are very good. There’s been no real decline in sales or profits for a lot of software companies.

The trouble is, investors are unsure what to make of the threat of AI. And that’s making them wary about buying these stocks.

That’s fair enough – the risks are hard to assess. But there seems to be nothing software firms can say or do to convince investors.

I wonder whether Nvidia might be in a similar situation. There have been some concerns recently and these are hard to shake off.

What are the issues?

Nvidia’s challenges come in two forms. One is that – results notwithstanding – there are doubts about exactly how much money it’s making.

Several analysts have noted that the firm has been making big investments in its customers. And that seems to have coincided with higher sales.

That raises a question mark over some of the company’s headline figures. So investors need to at least look closely at these.

Another potential issue is competition. The likes of Alphabet and Amazon have been working to reduce their dependence on Nvidia’s GPUs.

Replacing these won’t be straightforward. But it represents a risk that’s hard to assess accurately and investors can’t afford to ignore.

Neither of these is a reason to think Nvidia is about to come unstuck in a big way. But both are reasons for investors to be cautious.