The options market was pricing in a 10% move on Nvidia’s (NVDA) earnings. It is early, but with NVDA down just 2-3%, this relatively muted reaction suggests the results were largely as expected.

The rest of the market is either slightly higher or sideways. Looks like rotations: money leaving Nvidia for other opportunities in an orderly fashion.

In my mind, Nvidia has been downgraded from a “god” to a “king” – still dominant, but no longer untouchable. The primary sticking point was a decline in margin guidance. While the reasons will be debated, I think the overwhelming demand may be to blame. To keep pace, Nvidia may not be able to maintain the same level of efficiency.