By Brian Sozzi
Publication Date: 2026-08-24 12:09:00
When Nvidia (NVDA) reports its must-read earnings on Wednesday evening, it will confront this frustrating reality.
Strong earnings reports haven’t been too kind to Nvidia’s stock of late.
Nvidia stock has fallen in response to earnings in six of the past eight quarters, including the last four, per Yahoo Finance AlphaSpace analysis.
The reality is that the market is positioned for the company to post something great and for CEO Jensen Huang to sound super bullish on the earnings call.
The market also knows there is minimal downside risk to Nvidia’s growing investment portfolio, given the rising valuations (see Anthropic (ANTH.PVT), for example) being afforded to most privately held names in artificial intelligence.
“Because many of the debates around AI infrastructure spend/return on investment and credit risk are out of NVDA’s hands, we think the numbers are more important than the narrative and coming out of this call, we expect investors to gain greater confidence in a path to $15+ EPS in 2027E and $20 in 2028E — numbers that should keep the stock grinding higher,” UBS analyst Tim Arcuri said in a note.
Factor in Nvidia’s stock outperforming the S&P 500 (^GSPC) by five percentage points over the past month, per Yahoo Finance AlphaSpace data, and it suffices to say expectations on the Street are running hot into earnings.
And that hasn’t turned out too well in the last few…