Nvidia’s basic problem is that investor expectations are so high that the company struggles to meet them. In the quarter ended on July 27, results released today after the close of trading, Nvidia said it earned an adjusted $1.05 per share on $46.74 billion in revenue. Which disappointed the market. The stock fell 3.03% in after-hours trading.
what would a week be without an inflation report. And the week will end on Friday with the Personal Consumption Expenditures index report for July. The Fed’s favored inflation gauge, the core PCE was up 2.8% year-over-year in June and 2.7% in May. Another tick higher wouldn’t be good news for investors counting on the Federal Reserve to cut interest rates at its September17 meeting. But THE event of the week will be the earnings report from Nvidia (NVDA) after the close on Wednesday, August 27. Nvidia is expected to report earnings for the fiscal Quarter ending July 2025 of $0.94 a share. The reported earnings per share for the same quarter last year was $0.65. Nvidia faces a challenge to beat lofty expectations. Wall Street analysts expect Nvidia to deliver 53% year-over-year revenue growth in the quarter and expect a 48% increase in earnings.
In the long term, say two to three years, I think Huawei and its AI chips–plus the rest of China’s AI sector–pose a significant threat to Nvidia’s (NVDA) position as king of the AI mountain. In the short run, however, the negative aspects of that threat are far outweighed by the benefits to Nvidia of the Trump Administration’s decision to allow the company to resume selling its H20 chip in China.
The reason for that is pretty simple: in the short term whatever the technology capabilities of individual Huawei and other Chinese chips, in the aggregate China’s AI chip makers don’t have the capacity to manufacture AI chips in the volumes the global AI boom requires.
When on July 16 Nvidia (NVDA) announced that the Trump Administration had removed restrictions on the export of the company’s H20 AI chips to China, the stock popped 4.04%. The jump was understandable. China is a huge potential market for AI chips and the end of the sales ban meant that Nvidia could compete for a share of that market. But there is a downside to that news, too. The end of the chip export restrictions is an admission from the Trump Administration that the policies pursued by this administration and the Biden Administration in an attempt slow China’s efforts to dominate the global market for AI chips has been a failure. And that now there is no meaningful U.S. policy to slow China’s efforts.Nvida and its called companies are effectively in their own when it comes to the battle with China’s government-sponsored AI companies. How tough that fight will be was demonstrated on July 26 when Huawei Technologies showed off an AI computing system that one industry expert has said rivals Nvidia’s most advanced offering.
Going forward, I’m not all that interested in investing in the “old” Magnificent Seven. But I am interested in investing in a new “enhanced” Magnificent Seven that builds on and increases the exposure of these stocks to the market’s AI enthusiasm.
Shares of NVIDIA were up 4.51% in after-hpurs trading after the comply reported earnings .
The most important event of the short week ahead will be Nvidia’S (NVDA) report–after the market close on Wednesday, May 28, of earnings for the fiscal first quarter of 2026 that ended in April 2025.
Expect volatility. Both in Nvidia’s results and in the market where the numbers are likely to move stocks in the tech sector. Going into the report even analyst consensus estimates were volatIle with Zacks Investment Research putting the consensus estimate at 80 cents a share. Matching the higher consensus would mean year over year earnings growth of 44%. Revenue is projected at $43.4 billion. That would be 66% growth year over year.
Just days after Nvidia and otherrchip stocks rallied on news that thee Trump Administration would pause tariffs on chips and electronic goods, the White House has informed the company it would require a special license for exports of its H20 chips. The H20 chips were designed especially for the Chinese market in an effort to comply with U.S. restrictions on chip exports to China. No licenses for shipments into China have ever been granted, given the US government’s concern that the chips could be used to build AI supercomputers in the country, so the new rules are effectively a ban.
Shares of Nvidia closed down 6.87% today, April 16
Commerce Secretary Howard Lutnick said on Sunday the administration’s decision to exclude smartphones, computers and other popular electronic items from reciprocal tariffs was just temporary. The items will be subject to “semiconductor tariffs, expected to be implemented in “a month or two,” Lutnick said in an interview with ABC. “All those products are going to come under semiconductors, and they’re going to have a special focus type of tariff to make sure that those products get reshored.” President Donald Trump on Friday exempted a host of consumer electronic devices from reciprocal tariffs that include 125% tariffs on Chinese imports and 10% baseline tariffs on other countries. President Trump himself on Sunday posted that phones, computers and other popular electronic items will still be hit by tariffs.
Late Friday, April 11, the Trump administration announced that smartphones, computers and other electronic components are exempt from reciprocal tariffs, days after the United States imposed the highest levies on foreign goods in a century.
Last night, in after hours trading, shares of Nvidia (NVDA), which had closed up 3.67% in the regular session, traded down a twitch, slipping by 0.04%. Today, Thursday, February 27, the shares started off in decent shape but then sold off all afternoon, closing down 8.48%. What was so disappointing about Nvidia’s results? And what should you do about this drop?
The Invesco QQQ ETF (QQQ), which tracks the tech-heavy Nasdaq 100 index (NDX), closed below its 50-day moving average on Monday for the first time in just over three weeks. The ETF was down another 0.83% as of 3:30 p.m. New York time on Tuesday.
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