Nvidia shares fall 3.7% to session low

Nvidia shares fall 3.7% to session low

Nvidia Corporation (NVDA) shares experienced a significant drop on September 1, 2025, falling by 3.7% to a session low. This decline was driven by a combination of factors, including mixed reactions to the company's Q2 earnings report and growing concerns about the sustainability of AI demand.

The earnings report, released on August 27, 2025, showed that Nvidia beat Wall Street expectations, reporting revenue of $46.74 billion and earnings per share (EPS) of $1.05. However, the stock price declined by about 3% in after-hours trading due to several factors. The company's data center revenue was short of estimates, and geopolitical concerns, particularly regarding China, added to the negative sentiment [1].

The stock's performance was further impacted by weak guidance from Dell and reports of Alibaba developing rival AI chips, which put pressure on the broader semiconductor sector [2]. Additionally, Nvidia's lack of H20 chip sales to China and its reliance on a few key customers have intensified investor caution.

Technically, the stock has pulled back from recent highs near $500 (pre-split) and is currently consolidating around the lower end of its short-term range. The price tested $179.70 during the August 30 session before retreating, suggesting strong selling pressure near that level. Short-term momentum indicators, such as the Relative Strength Index (RSI), have begun to cool, falling from overbought conditions in early August to more neutral territory [3].

Despite the short-term bearish momentum, the broader uptrend remains intact, with NVDA comfortably above its 50-day and 200-day moving averages. The stock is currently trading around the $170 level, which is acting as near-term support. Resistance is expected around $180 to $185.

The recent price action indicates heightened volatility and possible repositioning by institutional investors, as volume surged post-earnings, with over 243 million shares traded in the last session, more than triple the 30-day average.

Nvidia and broader U.S. chip stocks came under pressure, capping off a losing week for the sector despite Nvidia’s headline Q2 earnings beat. The company's stock closed the week down approximately 2%, as investors remained cautious about the longer-term growth prospects and geopolitical risks.

References:

[1] https://www.cnbc.com/2025/08/27/nvidia-nvda-earnings-report-q2-2026.html
[2] https://www.shacknews.com/article/145690/nvidia-nvda-q2-2026-earnings-results
[3] https://tradersunion.com/news/financial-news/show/473406-nvidia-stock-drops/