Nvidia closed lower for a seventh consecutive session, marking its longest losing streak since 2022, in a decisive week that will culminate with the release of its quarterly results on Wednesday, August 26, after the US market close.
The stock
On Monday, August 24, shares fell 2.9% to close at $208.48, taking the total decline of the streak to about 7.5% over seven sessions starting August 14. According to Dow Jones data distributed by Morningstar, it is the worst run of declines since September 2022 and the poorest seven-day stretch since the period ending in June 2026. The stock also remains 10.8% below its all-time closing high of $235.74 reached on May 14, though it is still higher on a year-to-date basis.
A difficult sector backdrop
The decline was not isolated: on Monday semiconductor stocks also came under heavy pressure, with the Philadelphia Semiconductor Index falling 2.7%. Micron fell 5.83%, Broadcom 2.63% and AMD 3.49%, while the Nasdaq 100 index lost about 1%. Across the broader market, the S&P 500 slipped 0.28% to 7,653 and the Nasdaq Composite 0.77% to 25,980, dragged by weakness in technology shares.
Among the broader factors weigh fresh US economic sanctions against Iran and the Treasury Department's announcement last week that it would double its purchases of longer-dated bonds.
Why the stock is under pressure
According to Bloomberg reports over the weekend, Nvidia told its biggest customers it would raise prices by as much as 15% next year on servers equipped with its AI chips, citing rising memory costs. A move that could support margins in the medium term, but also drew attention to rising costs along the AI supply chain.
Add doubts over so-called circular financing deals, with Nvidia taking equity stakes in companies such as OpenAI and Anthropic that are also among its largest customers, as well as growing political backlash around the buildout of artificial-intelligence data centers.
What to expect from results
Wall Street consensus is looking for revenue near $92 billion, up about 97% year on year, and adjusted earnings per share close to $2.09. The company had guided for quarterly revenue of about $91 billion, with a GAAP gross margin of 74.9%. Morgan Stanley sees revenue of $91.1 billion and earnings per share of $2.07.
Signals remain nonetheless encouraging for the long term: over the past three months analysts have raised their earnings estimates for the company by 13%, and of the 48 analysts covering the stock, 44 maintain a Strong Buy rating, with an average price target of $306.22, roughly 42% above current levels. An analyst at Cantor Fitzgerald set a target of $350, about 67% above Monday's close.
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