{"slug": "why-nvidia-stock-is-rebounding-2-today-after-a-7-day-losing-streak", "title": "Why Nvidia stock is rebounding 2% today after a 7-day losing streak", "summary": "Nvidia stock (NVDA) rose about 2% to $212 on Tuesday, halting a seven-session losing streak ahead of its fiscal second-quarter earnings Wednesday. The decline was Nvidia's longest since 2022, with shares falling 7.5% over the stretch, and the stock is up 15% in 2026 versus a 66% gain for the PHLX Semiconductor Index. Analysts at BMO Capital and Raymond James expect another strong quarter, with BMO forecasting revenue $2 billion to $3 billion above the $92 billion consensus.", "body_md": "Nvidia stock (NVDA) rose around 2% to $212 on Tuesday, putting the stock on track to halt its seven-session losing streak as investors prepared for the chipmaker's fiscal second-quarter earnings after the bell Wednesday.\n\nThe seven-day decline was Nvidia's longest losing streak since 2022, with shares falling 7.5% over the stretch.\n\nThe recent weakness has also highlighted the stock's underperformance relative to the broader semiconductor sector.\n\nNvidia shares are up about 15% in 2026, compared with a 66% gain for the PHLX Semiconductor Index.\n\n## Customer concentration comes into focus\n\nNvidia remains a central beneficiary of the artificial intelligence boom, supplying the graphics processing units (GPUs) that power data centres and some of the world’s largest AI models.\n\nHowever, customer concentration remains a concern for investors.\n\nThe company relies heavily on hyperscalers such as Amazon, Google, and Microsoft, which purchase Nvidia GPUs in large quantities for their own AI workloads and cloud businesses.\n\nMeta and SpaceX have also become significant customers as they expand their AI infrastructure.\n\nIn its May earnings report, Nvidia changed how it discloses its customer base, separating hyperscalers from what it classifies as AI clouds, industrial and enterprise customers, or ACIE.\n\nNvidia does not identify individual companies within the hyperscaler category.\n\nThe breakdown will be closely watched in Wednesday's earnings report.\n\nIn the first quarter, Nvidia generated $37.9 billion in hyperscaler revenue and nearly $37.5 billion from ACIE customers.\n\nACIE revenue grew 31% from the previous quarter, compared with 12% growth for hyperscaler revenue.\n\nThe figures have increased scrutiny of whether Nvidia can broaden its customer base and maintain growth if its largest customers eventually slow their AI spending.\n\n## AI spending faces financial test\n\nConcerns about customer concentration come as several of Nvidia’s largest customers face rising capital requirements to fund their own AI expansion plans.\n\nAmazon and Alphabet both reported negative free cash flow in the second quarter, while Meta’s cash generation fell by more than 90% from a year earlier.\n\nSpaceX and Tesla, both led by Elon Musk, also reported negative free cash flow as they ramp up AI-related investments.\n\nThe developments have added to concerns about the sustainability of the AI infrastructure spending cycle and Nvidia’s reliance on a relatively small group of large customers.\n\nStill, analysts expect Nvidia to deliver another strong quarter, underscoring the continued demand for its AI chips despite growing questions over how long hyperscalers can sustain their current spending pace.\n\n## Analysts expect a beat\n\nBMO Capital reiterated an Outperform rating and $340 price target on Nvidia on Tuesday.\n\nThe firm expects second-quarter revenue to come in $2 billion to $3 billion above the Street consensus of $92 billion.\n\nBMO also expects third-quarter revenue to exceed the $104 billion consensus estimate by $2 billion to $3 billion, driven by strength in Nvidia's data center business.\n\nNvidia generated $253.49 billion in revenue over the last 12 months, representing 71% year-over-year growth.\n\nThe firm expects revenue growth to accelerate further as Nvidia's Vera Rubin architecture ramps up in the second half of the year.\n\n## Nvidia's CPU opportunity grows\n\nRaymond James also raised its price target on Nvidia to $352 from $330 while maintaining a Strong Buy rating.\n\nThe firm highlighted Nvidia's growing CPU business, which currently accounts for roughly 3% of total revenue.\n\nRaymond James expects that share to reach approximately 5% by calendar 2028.\n\nThe firm said Nvidia has increased its visibility in CPUs, particularly as demand grows for hardware supporting agentic AI applications.\n\nRaymond James extended its financial model through fiscal 2029 and calendar 2028 and said its market analysis suggests Nvidia could become the world's largest CPU revenue company within several years.\n\nCPU revenue is expected to be the fastest-growing component of its model.", "url": "https://wpnews.pro/news/why-nvidia-stock-is-rebounding-2-today-after-a-7-day-losing-streak", "canonical_source": "https://cryptonews.net/news/finance/33348524/", "published_at": "2026-08-25 16:48:00+00:00", "updated_at": "2026-08-25 17:15:07.522727+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-chips", "ai-infrastructure"], "entities": ["Nvidia", "BMO Capital", "Raymond James", "Amazon", "Google", "Microsoft", "Meta", "SpaceX"], "alternates": {"html": "https://wpnews.pro/news/why-nvidia-stock-is-rebounding-2-today-after-a-7-day-losing-streak", "markdown": 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