#英伟达财报周 Nvidia is currently at a critical turning point: its fundamentals remain strong, but market confidence and valuation logic are undergoing a rare test.

As of August 24, Nvidia's stock price had fallen for seven consecutive trading days, marking its longest losing streak since September 2022. The stock closed at $208.48, down more than 10% from its record high in May. This trend comes ahead of its Q2 earnings report, due on August 26.
Strong results versus “expectation fatigue”
From a financial perspective, Nvidia's fundamentals show no obvious flaws. The market broadly expects its Q2 revenue to reach approximately $92 billion, up nearly 97% year over year. However, the market reaction has shifted from “near certainty” to “clear caution.”
The core issue is that “expectations are too high.” Nvidia has exceeded expectations for several consecutive quarters, yet its stock price has fallen after each earnings report. When exceeding expectations becomes the norm, the market is no longer satisfied with “good” and instead demands “perfect.” During the losing streak, Wall Street analysts actually raised their earnings expectations for the next 12 months by 13%. This divergence between the stock price and expectations reflects the market's renewed scrutiny of high valuations and earnings quality—with a normalized P/E ratio approaching 60x after excluding unrealized stock gains.
Internal and external challenges compound
Short-term pressure is coming from rising supply-chain costs. Nvidia has notified customers that AI servers will rise in price by up to 15% next year due to surging memory costs. The long-term challenge is the changing competitive landscape—cloud giants such as Google and Amazon are accelerating the development of their own AI chips, while traditional rivals such as AMD are also working hard to catch up. Although Nvidia still controls approximately 90% of the AI accelerator market, customers' increasingly diverse options are weakening its “uniqueness.”
The earnings report is key to the short-term direction
This earnings report has drawn so much attention because the market views it as a “quarterly referendum on the AI sector.” Institutions such as Goldman Sachs have pointed out that whether the stock can regain its upward momentum will depend on the fulfillment of key signals, including cloud service providers' capital spending, supply-chain financing transparency, and share buybacks.
In short, Nvidia's market performance has shifted from being driven solely by results to a deeper contest over growth quality, earnings sustainability, and the industry's competitive landscape. Its short-term trajectory will be determined by this earnings report and management's forward guidance.$NVDA ‌