Nvidia's after-hours trading falls by over 1.5%

Nvidia's after-hours trading falls by over 1.5%

Nvidia Corporation (NASDAQ: NVDA) saw its stock fall by over 1.5% in after-hours trading on July 2, 2025. The decline comes amidst broader market uncertainty and increased competition in the AI chip sector [2].

The sell-off in Nvidia shares was part of a wider tech sell-off, with the Nasdaq Composite falling 1.4% and the S&P 500 decreasing by 0.6% [2]. The market's skepticism about the long-term profitability and sustainability of AI technologies, as well as the upcoming Federal Reserve's Jackson Hole symposium, contributed to the downturn [2].

TD Cowen recently raised its price target on Nvidia to $235, reiterating a "Buy" rating, but the stock's decline reflects broader market apprehension regarding the AI boom and increasing competition within the sector [2]. Advanced Micro Devices (AMD) recently announced a $5 billion acquisition of ZT Systems, which could intensify competition in the AI chip market [2].

Nvidia's stock has been volatile, with 21 moves greater than 5% over the last year. Despite the recent sell-off, the company remains a "Strong Buy" among Wall Street analysts, with a mean target of about $190, indicating potential upside of nearly 10% from current levels [3]. Analysts expect Nvidia's earnings report, scheduled for August 27, to be a significant catalyst for the stock [3].

Historically, the 30-day return following an earnings release has averaged 3.34% for NVDA, with a 57.14% win rate over this period since 2022. While short-term performance has been mixed—showing an average 3-day return of -2.59%—the data suggests that patient investors who hold through initial volatility may capture positive momentum. The maximum observed return of 14.91% occurred 59 days after an earnings release, highlighting the potential for meaningful gains, albeit with inconsistent timing [backtest]Backtest the impact of NVDA with Earnings Release Date, from 2022 to now..

Investors should closely monitor the performance of Nvidia in its upcoming earnings disclosure, as well as the broader market sentiment and the Federal Reserve's Jackson Hole symposium. The company is expected to report earnings of $4.26 per share and a revenue of $198.61 billion for the full year, demonstrating significant growth compared to the preceding year [4].

References:
[1] https://finance.yahoo.com/news/why-nvidia-nvda-stock-falling-195052034.html
[2] https://www.asktraders.com/analysis/nvidia-stock-falls-despite-price-target-increase-amid-ai-sector-concerns/
[3] https://finance.yahoo.com/news/nvidia-stock-falling-hard-no-202844297.html
[4] https://www.nasdaq.com/articles/nvidia-nvda-sees-more-significant-dip-broader-market-some-facts-know