NVDA: Nvidia Resumes Slide as Earnings Date Nears. Here’s What to Watch for in the Update

Chip giant washed out more than 8% in two days but before Wednesday’s close, bargain hunters caught a bid, almost erasing the session’s decline.

🐮 Stock Slips, But Bulls Step In

• Nvidia stock NVDA tumbled sharply earlier in the week, logging an 8% two-day slide as investors locked in profits after the shares' staggering year-to-date run. The slide took just about every tech company lower on Tuesday.
• The chip juggernaut shed some $350 billion across two sessions before bargain hunters swooped in late Wednesday, nearly erasing the day’s drop. With earnings on deck for August 27, traders are bracing for what could be the next big catalyst.
• Despite the volatility, Nvidia remains one of Wall Street’s most heavily traded AI plays, up 26% on the year, with option volume surging ahead of its earnings release.

👀 All Eyes on August 27 Earnings

• Here’s what traders and investors will be looking for. Wall Street expects Nvidia to post $1 earnings per share, up 47% from last year, on $45.9 billion in revenue, a 53% jump from last year’s $30 billion — blockbuster growth if it delivers.
• The numbers would underscore insatiable demand for Nvidia’s chips as Big Tech pumps nearly $350 billion into (mostly AI) capex this year. Cloud giants, data centers, and hyperscalers remain the biggest revenue engines.
• The overarching theme remains bullish, with analysts saying the AI spending boom is still young, with enterprises worldwide just starting to ramp AI budgets.

🎈 AI in a Bubble, Altman Says

• Apparently, traders figured the recent drop was a buying opportunity, betting Jensen Huang’s $4.3 trillion monster of a company (world’s number one) is still the centerpiece of a long, long AI supercycle.
• Analysts project trillions in AI infrastructure, software, and job creation over the next two to three years, with Nvidia positioned to capture a hefty slice of that spend.
• With the fresh drop factored in, Nvidia shares are en route to close out their second straight losing week — a streak not seen since April. What’s behind the fall? Ehm, just OpenAI CEO Sam Altman saying this whole AI thing may be a bubble.
• “Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes. Is AI the most important thing to happen in a very long time? My opinion is also yes,” Altman said in an interview for The Verge on Friday.