Shares of Nvidia Corporation (NVDA), the poster child of the artificial intelligence (AI) revolution, have experienced some volatility in recent trading sessions, mirroring the broader market trends. This comes as investors eagerly await Nvidia’s upcoming earnings report and closely monitor the Federal Reserve’s policy stance, particularly the upcoming Jackson Hole Symposium address by Fed Chair Jerome Powell.
Wall Street trader and market analyst Steve Grasso, known for his insightful market commentary, recently revealed that he has reduced his holdings in Nvidia. Grasso sold off his remaining shares, stating that he is closely observing the stock’s price action to determine a potential re-entry point. He previously sold off half of his Nvidia shares on Monday after the stock rebounded to $130 from its recent low of $103 during the August 5 market downturn. Grasso, who initially bought the shares at $100, had initially planned to sell them entirely. However, he believes the stock might still have some upside potential leading into the earnings release.
Nvidia’s next major catalyst is its second-quarter earnings report for fiscal year 2025, scheduled for release after the market close on Wednesday, August 28. Analysts widely anticipate the company to report earnings of 64 cents per share and revenue of $28.46 billion. This represents a significant increase compared to the year-ago period, when Nvidia reported 25 cents (split-adjusted) earnings per share and $13.51 billion in revenue. Nvidia has consistently surpassed elevated expectations for multiple quarters, and it remains to be seen whether the company can extend this streak.
The stock has recently faced some headwinds, including negative headlines surrounding a potential delay in the launch of the second generation of its B200 accelerator chips. Additionally, the ongoing US chip ban on China continues to be a source of concern for the company.
Despite these challenges, Oppenheimer analyst Rick Schafer remains optimistic about Nvidia’s future prospects. In a recent note, he expressed his expectation for upside in the second-quarter results and the third-quarter outlook. He attributes this optimism to sustained demand for AI solutions from cloud service providers and enterprises. Schafer anticipates a limited-volume market introduction of the Blackwell 100 accelerators in the fourth quarter, with a significant ramp-up expected in the following quarter. He reiterates his Outperform rating for Nvidia, with a $150 price target, emphasizing the company’s dominant position in the AI sector.
Nvidia’s stock closed Tuesday’s trading session down 2.12% at $127.25. Year-to-date, the stock has soared 157%, significantly outperforming the SPDR S&P 500 ETF Trust (SPY) which is up 18% and the iShares Semiconductor ETF (SOXX) which has gained 21%.
The coming weeks will be critical for Nvidia, with the Fed’s speech and earnings report likely to significantly influence the stock’s trajectory. Investors will be closely watching to see if the company can continue its impressive growth momentum in the face of market volatility and geopolitical uncertainties.
