SANTA CLARA, California, August 30, 2026, 19:57 (EDT)
- NVIDIA dropped 4.57% on Friday, closing at $217.55 with 194.6 million shares traded.
- The decline wiped out approximately $252 billion in market value.
- Quarterly revenue has doubled, though expenses for memory could lower the gross margin to around 71%–72%.
- The next scheduled public catalyst is an investor conference on September 10.
NVIDIA Corporation (NASDAQ: NVDA) fell 4.57% on Friday, wiping out roughly $252 billion. The drop came after shares jumped 6.8% post-earnings the previous day.
The reversal did not signal a warning about demand. NVIDIA posted quarterly revenue of $96.2 billion, an increase of 106% from a year earlier. Data Center revenue climbed to $89.0 billion NVIDIA results.
Rather than the growth itself, the market adjusted how much it would cost to achieve it. Executives project gross margin for the third quarter at about 74.0%, compared to the previous 75.0%. Chief Financial Officer Colette Kress stated that an increase in memory expenses may result in the fourth-quarter margin falling to 71%–72% Reuters.
| Metric | Q2 FY2027 actual | Q3 FY2027 outlook | Investor read-through |
|---|---|---|---|
| Revenue | $96.2 billion | $108.0 billion ±2% | Midpoint implies 12.2% consecutive growth |
| Gross margin | 75.0% | 74.0% ±0.5 point | Impact from component prices visible |
| China Data Center compute | Limited and uncertain | None assumed | Potential upside, licenses remain uncertain |
| Free cash flow | $21.3 billion | Not guided | Cash used for receivables and inventory |
The midpoint continues to suggest sequential revenue growth of $11.8 billion. That figure is also higher than the $104.2 billion analyst consensus provided by LSEG. NVIDIA’s forecast does not include China Data Center compute revenue.
Despite achieving record profit, cash conversion declined. Free cash flow decreased to $21.3 billion, down from $48.6 billion in the previous period. Accounts receivable rose by $22.3 billion and inventory used $5.8 billion.
The growth in working capital highlights significant scale, and also allows for measurable supply execution. At the close of the quarter, cash and debt securities stood at $56.6 billion, compared to $33.4 billion in debt.
Valuation provides a moderating factor. Reuters calculated NVIDIA’s forward earnings multiple at 17.9, versus 37.2 for Advanced Micro Devices (NASDAQ: AMD) and 46.2 for Intel Corporation (NASDAQ: INTC) peer comparison.
Analysts held a positive outlook following the earnings release. Data from LSEG showed that no fewer than 16 brokerages lifted their price targets. Trading volume for the stock on Friday reached 194.6 million shares, roughly 39% higher than its latest average Yahoo Most Active.
NVIDIA projects an atypical fiscal 2028 revenue increase of around 70%, outpacing analysts’ forecast of 44%. Vera Rubin is anticipated to account for approximately one-fifth of Data Center revenue in the current quarter.
Risks. Memory supply constraints could limit shipments and squeeze margins. Licensing issues in China are still unsettled. Custom-designed chips from customers may weigh on pricing, and NVIDIA’s financing agreements with AI clients might heighten credit and concentration risks.
The next scheduled public update is NVIDIA’s appearance on the Goldman Sachs technology conference webcast, set for September 10 at 08:50 PT company event page. Market participants will be focused on commentary regarding memory supply, Rubin ramp and margin specifics.
Image: NVIDIA’s main offices in Santa Clara. Coolcaesar/Wikimedia Commons, CC BY-SA 4.0; modified by cropping and resizing.
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