Nvidia shares have declined post-earnings in six of the past eight quarters despite strong results, raising investor expectations.
Nvidia (NVDA) faces a challenging earnings report on Wednesday, with shares falling after six of the last eight quarterly releases despite strong financial performance. Investors have grown cautious as the stock has declined in four consecutive quarters following earnings, per market data analysis.
The market is positioned for robust results, with high expectations for CEO Jensen Huang’s bullish outlook on the earnings call. Analysts highlight minimal downside risk to Nvidia’s growing AI investment portfolio, citing rising valuations in private AI firms like Anthropic.
UBS analyst Tim Arcuri projects confidence in Nvidia’s path to $15+ EPS in 2027 and $20 in 2028, suggesting long-term growth potential. However, the stock’s recent outperformance of the S&P 500 by five percentage points over the past month has heightened Street expectations, increasing pressure on the upcoming report.