Nvidia Stock Falls 1.1% After Earnings, Analysts Remain Bullish

Nvidia, Wall Street’s dearest for its AI madness, fell somewhere in the middle this time. Yes, the chipmaker produced another robust quarter, but its guidance for the next one did not quite live up to the expectations that investors had already factored in. As a result the share declined 1.1%, reminding investors that even the market’s darling is allowed to occasionally stumble.

Nvidia’s stock fell 1.1% to $179.58 on August 29, as investors processed the company’s post-earnings position. The stock is below its recent high of $183.98, which indicates the weakening of momentum following a strong rally. The RSI is still below 70, indicating strong but muted buying pressure. 

Investors are monitoring a key resistance level at $182-$185, which is a level that has been experienced earlier in the week. A convincing breakout higher would position for a move towards $195–$200, while support lies at $175 and a more solid foundation at $170, which has consistently held this summer.

Although there was a slight pullback, technicals remain bullish. The MACD remains in positive alignment, though decreasing histogram bars imply that the rally may need new catalysts. The Bollinger Bands are expanding, which reflects increasing volatility. 

With price grasping around the top band, Nvidia is either ready for another surging blast off or is approaching short-term anxiety. Traders are keenly observing intraday reversals along with volume surges as a cue for Nvidia’s next move.

Analysts Increase Targets

Wall Street is overall optimistic. At least 10 firms increased their 12-month price estimates, which boosted the average to $202.60 that is 12% above pre-earning levels. JPMorgan’s Harlan Sur raised his target to $215. He mentioned high demand visibility for next-generation Blackwell architecture, along with an order backlog that still outnumbers supply. Truist’s William Stein went even more aggressive, where he set a $228 target due to faith in long-term AI infrastructure expenditure.

Nvidia’s Q3 fiscal revenue guidance of $54 billion, while on target with consensus, still disappointed some bullish investors who were anticipating over $60 billion. Morgan Stanley’s Joseph Moore explained that guidance appeared conservative compared to Nvidia’s high-flying valuation. He also pointed towards the resilience of the demand story. 

Nvidia has gained over $1 trillion in market cap since May, which is a whopping 35% appreciation since Q1 earnings, highlighting Wall Street’s confidence in its AI dominance.

China Risks Are an Unpredictable Variable

Not all stances are risk-free. Analysts still note risks associated with China, which is a huge market with uncertainty. While the U.S has eased some restrictions on exporting AI chips, the changes have not yet shown up in significant revival in Nvidia’s China-related revenue. 

CEO Jensen Huang indicated that Nvidia might modify its Blackwell shipments to meet the needs of overseas customers, including China, but recognized that geopolitical terrain is still difficult to predict. Until things get clearer, looking into China’s role in Nvidia’s expansion is lacking.

Price Path Depends upon AI Demand

In the meantime, Nvidia seems to be in a temporary hold mode, ranging between $175 and $185 as investors process subdued guidance. The heavy institutional buying that is reflected in better than average volumes, coupled with increased analyst estimates shows us that its basic confidence remains intact. A breakout of $195 – $200 remains on the table, particularly if Blackwell-related demand accelerates at the end of year.

Nvidia’s Q2 profit of $1.05 per share on $46.7 billion in revenue exceeded expectations. Though an expected miss on data center revenue of $41.1 billion against the predicted $41.3 billion triggered the initial selling pressure. 

Still, the longer-term narrative is fixed on Nvidia’s position at the center of the AI revolution. Though short-term setbacks will test the patience of traders, the bigger trend still points to an upward continuation, which is just more measured than at the beginning of the year.

Finally, Nvidia’s 1.1% drop is more a matter of processing it, rather than being its weakness. The stock has surged this year, and some cooling-off was bound to happen. What’s critical here is whether the Blackwell architecture demand and steady AI spending can spark the momentum back. 

If they do, this phase will appear to be nothing more than a stop before the next leg higher. But if China headwinds continue and valuation fears intensify, even Nvidia’s magical growth narrative might experience chaos. Nvidia has not lost its throne, but Wall Street definitely demands confirmation that it won’t fall.