Nvidia Enters Earnings Report After Seven-Day Losing Streak, Its Longest Since 2022

Nvidia is set to report fiscal second-quarter 2027 results after the market close on August 26, capping a seven-session losing streak that marks the stock's longest consecutive decline since 2022. Wall Street consensus calls for adjusted earnings per share of $2.09 on revenue of $92 billion, against the company's own Q2 guidance of $91 billion in revenue, which excluded China data center compute. Nvidia's Q1 revenue came in at $82 billion, up 85% year over year, setting a high bar for the follow-through.

Prediction markets placed 96% odds on a headline earnings beat but only a 43% chance the stock closes above $220 after the report, reflecting a broader market dynamic in which strong results alone have struggled to lift top AI names. Seema Shah, chief global strategist at Principal Asset Management, told CNBC that Nvidia's report, alongside Federal Reserve Chair Powell's remarks at Jackson Hole, represents the pivotal test for markets this week, specifically whether the AI capital-spending cycle is beginning to generate profitable returns. Chip stocks more broadly have struggled over the past month amid renewed investor concern about the return on AI investment, though strong cloud growth from Microsoft, Amazon, and Google provided some reassurance ahead of the print.