Investors are dumping Nvidia (NVDA) heading into its closely watched earnings report on Wednesday evening.
Nvidia stock has fallen for seven straight trading days, per Yahoo Finance AlphaSpace data. The sell-off marks the stock's longest losing streak since 2022.
The stock has lost about 7% over this stretch, compared with a 1.2% drop for the S&P 500 (^GSPC). The Nvidia bulls may be looking to avoid one harsh reality, at least from a short-term perspective. Strong earnings reports haven't been too kind to Nvidia's stock of late.
Nvidia stock has fallen in response to earnings in six of the past eight quarters, including the last four, per Yahoo Finance AlphaSpace analysis.
The reality is that the market is positioned for the company to post something great and for CEO Jensen Huang to sound super bullish on the earnings call.
The market also knows there is minimal downside risk to Nvidia's growing investment portfolio, given the rising valuations (see Anthropic (ANTH.PVT), for example) being afforded to most privately held names in artificial intelligence.
Despite the pre-earnings slide, Nvidia is still expected to report a strong quarter on both the top and bottom lines and trades at an undemanding valuation.
In other words, there is a lot to like in Nvidia stock for the long term.
"It's a great stock to have in your portfolio, it's trading at a very reasonable multiple and growing its earnings and its revenues and its gross margins at a tremendous pace," B. Riley Wealth chief market strategist Art Hogan said on Yahoo Finance's Opening Bid (video above). "So, I think the reaction as a long-term investor is to ignore the noise around this and just understand it's one of the greatest companies and sits at the center of the artificial intelligence revolution."
Brian Sozzi* is Yahoo Finance's Executive Editor, host of the 'Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X*__ @BrianSozzi__,__ Instagram__, and__ LinkedIn__. Tips on stories? Email brian.sozzi@yahoofinance.com.
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