Investors are dumping Nvidia (NVDA) heading into its carefully watched earnings report on Wednesday night.
Nvidia stock has fallen for seven straight trading days, per Yahoo Finance AlphaSpace information. The sell-off marks the stock’s longest shedding streak since 2022.
The stock has lost about 7% over this stretch, in contrast with a 1.2% drop for the S&P 500 (^GSPC).
The Nvidia bulls may be wanting to keep away from one harsh actuality, at least from a short-term perspective. Strong earnings reports have not been too sort to Nvidia’s stock of late.
Nvidia stock has fallen in response to earnings in six of the previous eight quarters, including the last 4, per Yahoo Finance AlphaSpace evaluation.
The actuality is that the market is positioned for the company to post something great and for CEO Jensen Huang to sound tremendous bullish on the earnings call.
The market also knows there is minimal draw back risk to Nvidia’s growing investment portfolio, given the rising valuations (see Anthropic (ANTH.PVT), for instance) being afforded to most privately held names in artificial intelligence.
Despite the pre-earnings slide, Nvidia is still expected to report a robust quarter on both the prime and backside traces and trades at an undemanding valuation.
In other phrases, there is a lot to like in Nvidia stock for the long time period.
“It’s a great stock to have in your portfolio, it’s trading at a very reasonable multiple and growing its earnings and its revenues and its gross margins at a tremendous pace,” B. Riley Wealth chief market strategist Art Hogan said on Yahoo Finance’s Opening Bid (video above). “So, I think the reaction as a long-term investor is to ignore the noise around this and just understand it’s one of the greatest companies and sits at the center of the artificial intelligence revolution.”
Brian Sozzi is Yahoo Finance’s Executive Editor, host of the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance’s editorial management staff. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on tales? Email brian.sozzi@yahoofinance.com.
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