Nvidia witnesses first gains in eight sessions with earnings on deck

Nvidia aims to end seven-day sell-off.
Nvidia earnings arrive on Wednesday after the close.
Wall Street expects $2.09 in adjusted EPS on revenue of $92.2 billion.

Clay Webster FXStreet

Nvidia (NVDA) stock is trending higher on Tuesday for the first time since August 13. Shares of the AI chipmaker have risen as much as 3% to $214 following seven straight sessions of losses.

It's lost on no one that Tuesday's gains reflect Wall Street positioning against the company's Wednesday post-market release of fiscal second-quarter results. Wall Street expects CEO Jensen Huang's company to earn $2.09 in adjusted earnings per share (EPS) on $92.2 billion in revenue. And it will probably do so, if past experience is present, but investors need to see a major upswing in the outlook to provoke a spike in the share price.

The wider market is trading moderately higher on Tuesday as Oil (WTI) sinks some 3% as rumors swirl that the Trump administration's increased sanctions on Iran will bring the latter to the table.

Nvidia needs a bumper crop

Nvidia has been trading in the same vicinity for ten months, backing when $211 became resistance in October 2025. Since then, revenue has risen 42%.

For the fiscal Q2 results, the market is still expecting Nvidia to produce significant growth. Revenue is projected to grow 13% QoQ as revenue scales nearly 12% QoQ.

While Nvidia is unlikely to miss on the top or bottom lines, the outlook is less certain.

Nvidia was recently reported to be interested in investing in Perplexity, a high-profile AI startup. Nvidia is already an investor, and this round would provide Perplexity with a near $30 billion valuation. The company has seen its revenue surge from a quarter million at the start of the year to $750 million annualized at present.

At a time when many analysts are questioning the longevity of the AI boom, Benchmark expects the company's data center segment to overtake $85.1 billion in revenue in the quarter. And they aren't alone.

“We expect another strong print and higher outlook from Nvidia in the second quarter but believe the more important question is whether management can extend visibility through the Vera Rubin transition and reinforce confidence in the durability of growth into calendar 2027 and beyond,” said William Blair analyst Sebastien Naji.

Investors should expect to hear plenty about Nvidia's backstop for $500 billion in lending from six major lenders. This project from Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR would allow AI data centers to become their own category in the global debt market.

Additionally, Nvidia is reported to be providing more than $100 billion in credit support to a huge OpenAI data center campus in Ohio.

Nvidia stock chart

Nvidia stock now trades near support at $211, but Wednesday will tell if the market boots it back to support at $190 or up to resistance near $236.

In the short term, Nvidia has sold off for seven straight sessions, which gives us a fairly negative heading into earnings. However, the 100-day SMA has been rising since April, and this would be the perfect spot for bulls to take hold.

For months now analysts have been touting price targets north of $300. We might not get there shortly, but a break above $236 puts $255 in play.

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?

The Euro is not the sick man of Europe. France's bond market is

EUR/USD remains under pressure, near the 17-month low of 1.1161 reached on Monday. The pair has lost more than 7% since its yearly peak, as concerns over France's public finances increasingly weigh on the single currency. But behind the weakness of the Euro (EUR), the problem does not necessarily lie with the European economy as a whole.