Nvidia shares snap eight-session losing streak as earnings approach

Nvidia shares rose on Monday, snapping an eight-session losing streak, as investors positioned ahead of the company’s quarterly earnings report. The stock gained approximately 2% in early trading, though it remains down significantly from its recent highs.

Why investors are watching Nvidia’s earnings closely

Nvidia is scheduled to report its fiscal fourth-quarter results on Wednesday, and the stakes are high. The company has been the primary beneficiary of the AI infrastructure boom, with its data center segment driving record revenue. However, concerns about sustainability of AI spending, potential export restrictions, and a high valuation have weighed on the stock in recent weeks.

The recent pullback has erased roughly $500 billion in market value from Nvidia, reflecting a broader market correction in tech stocks. Analysts are divided on whether the sell-off represents a healthy consolidation or the beginning of a more prolonged downturn.

Market context and analyst expectations

For the quarter ending January 2025, analysts expect Nvidia to report earnings per share of around $0.85 on revenue of $38.2 billion, according to consensus estimates. That would represent year-over-year growth of approximately 70% in revenue, a slowdown from the triple-digit growth of previous quarters but still robust.

Investors will be looking for guidance on the next quarter, especially any commentary on the ramp of the company’s next-generation Blackwell chips. Management has indicated strong demand, but supply constraints have been a recurring theme.

What the recent sell-off means for long-term investors

The eight-day decline has been attributed to profit-taking after a massive rally, as well as macroeconomic uncertainties. Some analysts see the pullback as an opportunity, arguing that Nvidia’s fundamental growth story remains intact. Others caution that the stock’s valuation, trading at over 30 times forward earnings, leaves little room for error.

For readers, the key takeaway is that Nvidia’s earnings will likely set the tone for the AI trade and the broader tech sector in the near term. A strong report could restore confidence, while a disappointment might exacerbate the sell-off.

Conclusion

Nvidia’s stock rebound on Monday offers a tentative sign of stability, but the real test comes with Wednesday’s earnings. The results will provide clarity on AI demand and the company’s growth trajectory, and they will likely influence market sentiment beyond the semiconductor sector.

FAQs

Q1: When will Nvidia report earnings?
Nvidia is scheduled to report its fiscal fourth-quarter earnings on Wednesday, February 26, 2025, after market close.

Q2: Why did Nvidia’s stock fall for eight straight sessions?
The decline was driven by profit-taking, valuation concerns, and broader market uncertainty regarding AI spending sustainability.

Q3: What are analysts expecting from Nvidia’s earnings?
Analysts expect EPS of around $0.85 and revenue of $38.2 billion, representing roughly 70% year-over-year growth.