Nvidia Stock Falls for a Seventh Straight Session Before Its $92 Billion Earnings Test

Key Takeaways

• Nvidia shares fell 2.9% on Monday, extending their losing streak to seven sessions and bringing the cumulative decline to roughly 7.5%.
• Wall Street expects Nvidia to report approximately $91.8 billion to $92 billion in quarterly revenue, nearly double the year-earlier level.
• Blackwell demand, the Vera Rubin rollout, gross margins and China sales will be central to the stock’s post-earnings reaction.

Nvidia shares extended their decline on Monday as investors reduced exposure to artificial intelligence stocks before the chipmaker’s closely watched quarterly earnings report.

The stock dropped 2.9%, marking its seventh consecutive losing session and its longest such streak since September 2022. Nvidia has fallen about 7.5% over that period, reflecting rising caution after a powerful AI-driven rally pushed both its valuation and investor expectations sharply higher.

The weakness spread across the semiconductor sector. Sandisk declined 6.5%, Micron Technology lost 5.8%, AMD fell 3.5% and Broadcom dropped 2.6%. The Philadelphia Semiconductor Index slid 2.7%, while the Nasdaq Composite finished 0.8% lower. The Wall Street Journal reported that concerns over AI valuations and the growing debt required to finance data-center construction weighed on technology stocks.

Nvidia remains the main test of whether the AI infrastructure boom can continue supporting elevated valuations across the semiconductor market.

Nvidia Earnings Date and Wall Street Expectations

Nvidia will release its fiscal second-quarter 2027 results on Wednesday, August 26, at approximately 1:20 p.m. Pacific Time. Its earnings call will begin at 2 p.m. PT, or 5 p.m. ET, according to the company’s official announcement.

Wall Street expects revenue of approximately $91.8 billion to $92 billion, representing growth of nearly 100% from the prior-year quarter. The consensus earnings estimate stands at roughly $2.09 per share.

Nvidia itself guided for revenue of $91 billion, plus or minus 2%. The company also projected GAAP and non-GAAP gross margins of 74.9% and 75%, respectively.

Reaching $92 billion would establish another quarterly revenue record. However, the recent stock decline indicates that investors are no longer satisfied with headline growth alone. The company may need to exceed estimates substantially and issue a strong outlook to reverse the negative momentum.

Blackwell Demand Remains the Main Growth Engine

Nvidia entered the quarter with considerable operating momentum. Fiscal first-quarter revenue reached a record $81.6 billion, rising 85% year over year and 20% sequentially. Data-center revenue increased 92% to $75.2 billion, accounting for more than 92% of total sales.

Data-center compute revenue reached $60.4 billion, while networking revenue surged 199% to $14.8 billion. Nvidia attributed the expansion to continued investment in AI factories, accelerated computing and agent-based artificial intelligence.

Management’s $91 billion second-quarter forecast implies another sequential revenue increase of approximately 11.5%. Analysts surveyed by Visible Alpha expect data-center revenue of around $85.7 billion, although individual forecasts range from $83.5 billion to $91.5 billion, according to S&P Global Market Intelligence.

Investors will closely examine Blackwell system deliveries, including whether supply improvements have allowed Nvidia to convert its large order pipeline into recognized revenue. Commentary on demand from Microsoft, Amazon, Alphabet, Meta and other major AI infrastructure customers will also be important.

Any suggestion that hyperscale customers are moderating capital expenditure could pressure Nvidia and the broader AI trade. Conversely, evidence that demand continues to exceed supply would help support expectations for another strong year of data-center growth.

Vera Rubin Outlook Could Matter More Than the Quarterly Beat

Attention is increasingly shifting from Blackwell to Nvidia’s next-generation Vera Rubin platform. Investors want greater visibility into its production schedule, customer adoption and expected revenue contribution.

The market will assess whether Rubin remains on track for its planned rollout and whether the platform can deliver another meaningful performance improvement for AI training and inference. A smooth transition would strengthen Nvidia’s position against AMD accelerators and custom chips developed by cloud providers.

However, the transition could also create execution risks. New systems require advanced memory, networking components, packaging capacity and extensive customer testing. Any delay could push revenue into later quarters and raise questions about the sustainability of Nvidia’s growth rate.

Gross Margins and China Sales Remain Key Risks

Profitability will be another major focus. Nvidia’s non-GAAP gross margin reached 75% in the previous quarter, and management expects it to remain at that level in the second quarter.

Maintaining margins near 75% would demonstrate continued pricing power despite higher costs for advanced memory, wafers, packaging and networking equipment. A weaker margin outlook could indicate that the growing complexity of complete AI systems is beginning to pressure profitability.

China represents another source of uncertainty. Nvidia’s $91 billion guidance assumes no data-center compute revenue from China. That makes any progress toward restoring sales a potential upside catalyst, but export restrictions and geopolitical tensions continue to limit visibility.

Management’s comments on permitted chip shipments, Chinese competition and the long-term size of the country’s AI market could therefore influence investor expectations beyond the reported quarter.

A Strong Report May Still Not Be Enough

Nvidia shares have fallen on the trading day following each of the company’s past four earnings reports, according to MarketWatch. That pattern shows how dramatically the bar has risen.

A modest revenue beat may not be enough to satisfy investors if the outlook, margins or Rubin timetable disappoint. Nvidia will need to show that demand remains durable, customers continue expanding AI budgets and its product roadmap can defend the company’s dominant position.

The seven-session decline has removed some short-term optimism from the stock, but Wednesday’s results will determine whether the pullback becomes a buying opportunity or the beginning of a broader reassessment of the AI investment cycle.