NVIDIA Stock Drops Nearly 2 Percent to $210 on Seventh Losing Day Ahead of Critical AI Earnings

SANTA CLARA, Calif. — Shares of NVIDIA Corp. fell nearly 2 percent on Monday, extending a multi-day slide that has become the chipmaker's longest losing streak in nearly four years, as investors grew cautious ahead of the company's closely watched quarterly earnings report.

NVIDIA stock traded around $210.07 in midday action, down about $4.65 or 2.17 percent, according to market data. The decline put the shares on track for a seventh consecutive session of losses and marked one of the steeper single-day drops in recent weeks. The stock has fallen roughly 6.7 percent over the current streak and remains more than 10 percent below its all-time closing high of $235.74 set in mid-May.

The pullback comes just days before NVIDIA is scheduled to report fiscal second-quarter results on Wednesday after the market close. Wall Street analysts on average expect revenue of approximately $92 billion, representing growth of about 96 percent from the year-earlier period, with adjusted earnings per share near $2.09. Data-center revenue, the primary driver of the company's results, is projected near $85 billion, more than double the year-ago figure, according to consensus estimates.

Investors have grown increasingly selective about high-valuation technology stocks in recent sessions. Broader semiconductor shares also declined Monday, with the iShares Semiconductor ETF falling nearly 3 percent. Micron Technology dropped more than 6 percent, while Advanced Micro Devices and Broadcom also posted losses. The Nasdaq Composite was lower while the Dow Jones Industrial Average showed relative resilience.

Several factors contributed to the pressure on NVIDIA shares. Reports indicated the company has signaled to some large customers that prices for AI servers could rise by more than 15 percent, prompting questions about whether higher infrastructure costs might moderate demand from hyperscale cloud providers. Separately, investor attention has focused on NVIDIA's expanding role in helping arrange external financing for data-center buildouts through partnerships with major financial firms. Some market participants have described elements of these arrangements as circular financing, in which the supplier helps facilitate purchases of its own products.

Geopolitical developments added to the cautious tone. Risk sentiment weakened after comments from U.S. officials regarding sanctions and economic measures targeting Iran, contributing to a broader rotation away from growth-oriented technology names. Rising Treasury yields have also weighed on high-multiple stocks throughout the recent period.

Despite the near-term stock weakness, NVIDIA continues to dominate the market for advanced artificial-intelligence accelerators. The company's Blackwell architecture has driven rapid growth in data-center revenue, and management has pointed to strong customer adoption of both Blackwell and the forthcoming Vera Rubin platform. In prior comments, founder and Chief Executive Jensen Huang has described the buildout of AI infrastructure as accelerating and has expressed confidence in substantial multi-year revenue from the Blackwell and Rubin generations.

NVIDIA remains supply-constrained even as it works to expand production capacity. The company has secured commitments intended to support robust growth while acknowledging that demand continues to outpace available supply for its highest-performance systems. Hyperscalers, enterprises and sovereign entities remain key buyers of the GPUs used to train and run large language models and agentic AI applications.

The stock's recent valuation has compressed relative to earlier peaks. After reaching elevated multiples during the initial AI investment surge, NVIDIA now trades at levels closer to those seen before the most intense phase of the boom, according to market data. Some analysts have noted that the shares appear more reasonably priced on a forward-earnings basis than at previous highs, though expectations for continued outsized growth remain elevated.

Monday's trading volume was among the highest in the S&P 500, reflecting active positioning ahead of the earnings release. History shows that NVIDIA shares have often experienced short-term volatility in the sessions immediately following results, even when the underlying numbers have exceeded expectations. The company has a track record of beating both its own guidance and consensus estimates, though the margin of those beats has drawn closer scrutiny as the absolute figures have grown larger.

NVIDIA's market capitalization still ranks among the largest of any publicly traded company, reflecting its central position in the AI supply chain. The firm's gross margins have remained high, supported by the specialized nature of its products and software ecosystem. Free cash flow generation has enabled substantial capital returns to shareholders, including expanded share-repurchase authorizations and a higher quarterly dividend announced earlier in the year.

Looking ahead, investors will focus on several metrics in Wednesday's report: sequential growth in data-center revenue, commentary on the ramp of next-generation platforms, any updates on supply-chain constraints, and forward guidance for the current quarter. Management's outlook on customer capital spending, pricing trends and the durability of AI infrastructure demand is expected to shape the near-term stock reaction.

The semiconductor sector more broadly has seen mixed performance this year as investors rotate among memory, foundry and accelerator names. While NVIDIA has underperformed some peers on a year-to-date basis relative to its earlier gains, its absolute revenue and profit growth continue to stand out within the industry.

For now, the combination of pre-earnings caution, higher component and infrastructure costs, and a less risk-tolerant market environment has kept pressure on the shares. Whether the upcoming results and guidance can reverse the recent losing streak will depend on how far the reported figures and management commentary exceed the already elevated bar set by analysts and investors.

NVIDIA's trajectory remains closely tied to the pace of global AI investment. As cloud providers, enterprises and governments continue to expand computing capacity, demand for the company's products is expected to remain a central factor in technology sector performance through the remainder of the year and beyond.