Nvidia Stock Slips Ahead of Q3 Earnings as AI Sector Faces Reality Check
Nvidia shares fell over 3% ahead of its Q3 earnings report, reflecting investor caution about the chipmaker's valuation and broader AI sector concerns. The results are viewed as a litmus test for AI stocks, with analysts anticipating $1.26 per share earnings and $54.9 billion in revenue—both up more than 50% year-over-year.
Rising data-center costs and slowing enterprise demand have pressured Nvidia and peers like Oracle. Major investors, including SoftBank and Peter Thiel, have trimmed positions, fueling speculation about insider sentiment. The stock's 37% year-to-date gain now faces scrutiny over whether fundamentals justify its premium.