The more Nvidia beats Wall Street’s expectations, the harder it seems to satisfy them. The chipmaker reported second-quarter revenue of $46.74 billion, with sales up 56% year over year, and earnings per share of $1.08, easily topping Wall Street’s forecasts. The company’s gross margins also surged to 72.4%, up from 61% last quarter.

For most other companies, the results would be a home run. But for Nvidia, whose quarterly financials have become a litmus test for the AI boom, Wall Street wasn’t convinced. Shares fell more than 3% in after-hours trading as the chipmaker came up short of most of Wall Street’s most optimistic forecasts. The stock was trading lower in pre-market, down about 1.3%.

The market reaction is somewhat paradoxical: Nvidia’s core business is still booming, with th

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