Nvidia shares (NASDAQ: NVDA) declined 5.68% to $222.97 in morning trading on Monday as traders shifted focus to earnings. The pullback followed a 4.4% drop on Friday and ended a strong rally. Market participants repositioned ahead of Wednesday’s quarterly results and adjusted short-term exposure.
Nvidia stock retreated after reaching record levels during a recent multi-session advance. The decline came as traders locked in gains and reduced positions before earnings. The move followed a 4.4% slide on Friday, which signaled slowing momentum.
At the same time, broader indexes showed mixed performance across U.S. markets. The S&P 500 fell 0.2% while the Nasdaq Composite dropped 0.5%. However, the Dow Jones Industrial Average gained 91 points during morning activity.
Traders also tracked oil prices, Treasury yields, and tensions in the Middle East. Those factors influenced risk appetite across equities. As a result, technology shares showed uneven trading patterns.
Earnings now serve as the immediate catalyst for Nvidia and related technology stocks. Analysts expect management to address production capacity and margin trends. They also expect updates on demand across training and inference workloads.
Wall Street continues to examine Nvidia’s competitive position in advanced processors. Rival firms promote alternative systems designed for inference tasks. At the same time, companies explore CPUs as lower-cost options for certain workloads.
KeyBanc analyst John Vinh expects Nvidia to introduce stand-alone CPU server racks at Computex. He believes the launch could expand product offerings. The conference will take place in Taiwan in early June.
Morgan Stanley analyst Joseph Moore expects Nvidia to deliver another “beat-and-raise” quarter. He projects revenue could exceed estimates by about $3 billion. He also expects forward guidance to surpass consensus by roughly $4 billion.
Morgan Stanley raised its April-quarter revenue estimate to $79.26 billion from $78.25 billion. The bank increased its earnings-per-share forecast to $1.72 from $1.69. It also lifted long-term projections for revenue and profit.
The firm now estimates fiscal 2028 revenue near $587 billion. That figure marks an increase from roughly $452 billion. Earnings-per-share forecasts for that year rose to $13.11 from $10.14.
Visible Alpha consensus data shows expected fiscal first-quarter 2026 revenue of about $78.5 billion. Analysts forecast data-center revenue near $72.8 billion for the quarter. That compares with projections around $53.8 billion less than a year earlier.
Large technology firms continue to raise capital expenditure plans tied to advanced computing. Microsoft, Meta, Amazon, and Alphabet increased spending forecasts in recent quarters. Their investment plans support demand for Nvidia’s graphics processors.
Nvidia’s outlook for China remains in focus after U.S. export restrictions tightened chip sales. Management may address supply limits and regional revenue exposure. The company will release earnings results on Wednesday.
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