NVDA: Nvidia Stock Falls 2.2% as Pressure Builds on Chip Maker Ahead of Earnings Report

Another bumper quarter is expected when Nvidia releases its earnings results Wednesday after the bell. Here’s what to know.

• Nvidia stock NVDA tumbled 2.2% to start this week’s trading as the chip giant neared another milestone. On Wednesday, the stock market’s main character and the leading AI player will release its earnings update for the most recent quarter. As is tradition, Wall Street has some lofty expectations to be met. But, perhaps even more important, the financials will shed light on how fast AI is getting adopted out there.
• Nvidia is expected to more than double its sales year-on-year with analysts eyeballing $28.7 billion in revenue. Even that high bar will pale in comparison with the previous quarter’s revenue growth of 262%. All underpinned by insatiable demand for the AI chips carrying a price tag north of $25,000 a piece. Besides the figures, investors will be watching for the release of the Blackwell GPU — a next-generation game-changing chip that was delayed over design flaws.
• Shares of Nvidia have added more than 160% to their valuation this year. Briefly even — in June — the Jensen Huang-led tech juggernaut blasted off to become the world’s most valuable company. And to think that just five years ago, before the monster 3,000% share price gain to date, Nvidia was barely known outside the techy and geeky circles.