Nvidia Drops 2.7% Ahead of Earnings Report

On May 23, 2025, Nvidia's stock experienced a 2.7% drop in pre-market trading.

Nvidia is set to release its latest financial report on May 28, 2025, after the market closes. Analysts predict that the stock could face significant volatility, with potential swings of up to 7.4% in the following day. This anticipation of volatility is based on historical data showing that Nvidia's stock has averaged an 11.3% swing in the days following earnings reports over the past eight quarters.

In February 2025, Nvidia's stock declined by 8.5% after the release of its fourth-quarter earnings report for the fiscal year 2025. Despite exceeding Wall Street's earnings expectations, the company's outlook for the next quarter's gross margin fell short of projections, leading to a significant drop in stock price.

Nvidia's stock has faced challenges due to the rapid development of AI in China and the fluctuating trade policies under the Trump administration. The company's CEO, Jensen Huang, recently criticized the U.S. government's export restrictions on AI chips, stating that these measures have not only failed to hinder China's progress in the semiconductor industry but have also resulted in substantial revenue losses for U.S. companies.

Despite these challenges, Nvidia's stock has historically provided substantial returns to investors who held onto their shares for at least 12 months before and after earnings reports. The median return for such investors has been close to 120%.