Nvidia crushed earnings and is still dropping (NVDA)

NVIDIA CEO Jensen Huang

Nvidia crushed its earnings and is still seeing its stock price plummet.

Nvidia is down 8.39% in premarket trading after trumping Wall Street's expectations for earnings and revenue. The company brought in $1.10 per share, higher than estimates of $0.82, on revenue of $2.23 billion, which was higher than the $1.96 billion expected.

Despite crushing its earnings, Nvidia's shares still faltered.

"Overall, we think expectations were simply too high," Mitch Steves, an analyst at RBC Capital Markets, said in a note to clients.

Steves remains bullish on Nvidia and says that the quarterly results are strong.

Data centers are one of the most exciting areas of growth for the company, with revenue up 176% year-on-year during a product transition, according to Steves. The company recently released its Volta processor, which is significantly faster than previous generations and should add to Nvidia's share of the data center market.

Nvidia's other business all grew also. Gaming revenue was up 51.9%, pro visualization grew 9.8% and automotive grew 19.3% year over year.

Nvidia is up 61.49% this year, including the post-earnings drop.