NVIDIA (NVDA) Stock Slips Despite Strong AI Demand and Record Revenue
During the early European trading session on Friday, the NVIDIA company stock failed to gain positive traction and dropped to $202.78...
Quick overview
- NVIDIA stock dropped to $202.78, reflecting a 0.66% loss in the last 24 hours despite a 2.85% gain over the past five days.
- The decline is attributed to market rotation and weak interest in tech stocks, with investors shifting focus away from big tech like NVIDIA.
- NVIDIA reported strong sales growth, with $216 billion in sales last year, and a 65% increase in GAAP net income, indicating robust internal growth.
- Positive news from China regarding potential sales of NVIDIA's H200 AI chips could provide additional opportunities for revenue growth.
During the early European trading session on Friday, the NVIDIA company stock failed to gain positive traction and dropped to $202.78, showing 0.66 percent losses in the last 24 hours. Although the drop was very small compared to its previous day bullish performance.
NVIDIA stock has gained 2.85 percent in the past five days and 9.65 percent in the last six months. Despite this, the stock seems to be going to end this week on a bearish track as it is trading sluggishly on the day.
Moreover, the reason for its current decline can be attributed to the market rotation and weak interest in tech stocks. This can be witnessed by the fact that investors started buying other stocks instead of big tech stocks like Nvidia, which was considered a general weakness in the tech market.
Apart from this, many investors believed the stock was already overpriced and started taking profits. As a result of this, the stock price lost its momentum even though the company is still doing very well.
Strong Sales Support NVIDIA Stock
Despite this, the company is doing very well in terms of internal growth and this was proven by its strong earnings reports, which show that the company made 216 billion dollars in sales in the last yea.
This was 65 percent higher than the previous year. Meanwhile, the companys GAAP net income was 120 billion dollars, which also increased by 65 percent from the previous year. Moreover, the Data Center business, which sell AI chips, made the highest sales.
Besides this, the sales reached 81.6 billion dollars in Quarter one fiscal 2027, which was 85 percent higher than the previous year. During this quarter, the Data Center made 75.2 billion dollars.
Looking at all these positive developments, the company is very confident about its future. Moving on, investors are keeping thier eyes on the Q2 fiscal 2027 earnings report, which is scheduled to be released on 26 August 2026. NVIDIA management gives revenue guidance of 91 billion dollars.
Many investors are waiting for this report. This is because the demand is expected to increase further due to AI inference and the new Blackwell platforms.
These strong results show that NVIDIA is growing fast and making more money. This can make investors more confident, increase buying interest, and help the stock limit its current modest losses.
China News Brings Hope for NVIDIA
Another good news is that the Chinese government will likely allow some major tech companies to buy Nvidia H200 AI chips. This may happen in limited numbers, but it could create an opportunity for extra sales for Nvidia. H200 chips are powerful and are widely used for AI training.
Nvidia says that its plans for its new powerful chips, such as Blackwell and Vera Rubin, are completely on track and there are no major delays.
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