Sentiment around NVIDIA’s Earnings Reports

Background

Since early 2023, the AI hardware boom has shown no signs of slowing down.Surging demand for data centers and large-scale computation continues to drive NVIDIA’s (NVDA) earnings well above market expectations.

Since August 2023, NVDA’s EPS growth has remained consistently positive, underscoring both operational strength and secular AI momentum.

Historical Pattern: “Sell into Earnings”

Despite NVDA’s strong fundamentals, the stock often exhibits a counterintuitive “sell into earnings” behavior.This pattern reflects investors’ tendency to take profits ahead of earnings releases, followed by post-earnings rallies once uncertainty clears.

Historical Statistics

Period	Median Price Movement	Market Behavior
Week Before Earnings	−4% total decline	Short-term profit-taking and positioning adjustments
Month After Earnings	+10% total gain	Rebound driven by strong results and guidance optimism

 Interpretation

• NVDA’s pre-earnings pullbacks likely reflect cautious sentiment and hedging activity among institutional investors.

• Post-earnings rallies tend to be driven by strong fundamental results, AI demand momentum, and upward guidance revisions.

• For medium-term investors, these dynamics suggest that short-term weakness may present opportunity—provided macro conditions remain stable.

Disclaimer: Personal view only. Not financial advice.