Nvidia shares log seventh straight loss ahead of earnings
The chipmaker’s stock has shed approximately 7% over the past week, marking its longest losing streak since 2022, as investors position themselves ahead of Wednesday’s results.
Nvidia shares have declined for seven consecutive trading days, a stretch that represents the company’s longest losing streak since 2022. The sell-off has seen the stock lose approximately 7% of its value, underperforming the broader market as the S&P 500 index fell by 1.2% over the same period.
The drop occurs as investors look ahead to Nvidia’s closely watched earnings report, scheduled for release on Wednesday evening. While the market is positioned for the company to post a strong quarter on both revenue and profit, the pre-earnings slide highlights a persistent pattern in the stock’s recent history.
Data indicates that Nvidia’s share price has fallen following its earnings release in six of the past eight quarters, including the last four. This trend suggests that strong results have not always been sufficient to drive immediate price gains, a reality that bulls may be keen to avoid in the short term.
Despite the recent volatility, analysts argue that the company’s fundamental position remains robust. B. Riley Wealth chief market strategist Art Hogan described Nvidia as a “great stock” that is trading at a “very reasonable multiple.” He noted that the company is growing its earnings, revenues, and gross margins at a tremendous pace.
Hogan suggested that long-term investors should ignore the short-term noise, stating that Nvidia sits at the centre of the artificial intelligence revolution. He emphasised that the stock remains a strong portfolio holding despite the recent price action.
The company’s broader investment portfolio is also seen as a stabilising factor. Nvidia holds stakes in privately held artificial intelligence names, such as Anthropic, which are currently enjoying rising valuations. This dynamic is viewed as carrying minimal downside risk for the chipmaker.
CEO Jensen Huang is expected to sound bullish during the upcoming earnings call, further reinforcing the narrative of continued strength in the AI sector. For now, the market awaits Wednesday’s figures to determine if the streak will finally be broken.
