On Wednesday, Nvidia Corp (NASDAQ:NVDA) delivered blockbuster quarterly results and raised its outlook, but the stock's muted after-hours reaction sparked debate on Wall Street about expectations and long-term growth.

Record Results, Strong Outlook

CNBC's Jim Cramer took to X and said the after-hours decline in shares of Nvidia was unwarranted, calling the pullback "a mistake" following a quarter that exceeded already high expectations.

Nvidia trading down from after hours high on questions about China. I think that's a mistake.

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Nvidia shares gained 1.44% during Wednesday’s regular session, reaching $195.62. In the after-hours trading, it declined briefly, but at the time of writing, the price was up by 0.15% at $195.92, according to Benzinga Pro.

Meanwhile, Deepwater Asset Management's managing partner Gene Munster said the market's response reflects broader concerns about the sustainability of the company's growth, even as results topped forecasts.

Munster said he expects Nvidia to continue performing well and sees further upside in the stock. However, he noted that the potential gains may be more limited compared with some other AI companies, partly due to its large market size.

$NVDA Three takeaways on Pressure Points:

1. The stock being down 1% underscores that investors' long term growth concerns remain.

2. The fundamentals and outlook came in better than elevated whisper numbers.

3. Most importantly, the guidance reinforces just how early we are in… pic.twitter.com/Zx214R5buy

The chipmaking giant currently has a market cap of $4.75 trillion.

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Nvidia Issues Strong Outlook, Excludes China Revenue

Nvidia reported fourth-quarter revenue of $68.13 billion, up 73% year over year and above Wall Street estimates.

Earnings per share came in at $1.62, also ahead of expectations. The company projected first-quarter revenue between $76.44 billion and $79.56 billion, well above analysts' estimates, while forecasting gross margins near 75%.

During the earnings call, Nvidia executives said they are not assuming revenue from China in their outlook and that future shipments remain uncertain.

"While small amounts of H200 products for China-based customers were approved by the U.S. government, we have yet to generate any revenue, and we do not know whether any imports will be allowed into China," said Nvidia CFO Colette Kress.