Nvidia's “golden age” continues—But is the market buying it?

Nvidia just delivered another blowout quarter—but does this change the NVDA stock price prediction, or is the market already pricing in perfection? I break down the earnings, the chart, and what it means for AI-related shares heading into the fall.

Having led the charge among AI-related shares for some time, Nvidia Corp (symbol NVDA) continues as one of the most important names in the American stock market's significant August rally. After another extremely strong earnings report on 26 August, Nvidia made gains and moved back within striking distance of May's all-time highs. In this week's episode, I'm discussing Nvidia's performance and the broader NVDA stock price prediction with Clay Webster, senior stock analyst at FXStreet. This article provides some context for Nvidia's recent gains, but for full details, please watch or listen to the podcast if you haven't yet.

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Nvidia's Q2 numbers: Revenue doubles, beats across the board

Nvidia’s founder and CEO Jensen Huang was, as usual, ebullient on the company’s latest earnings call, hailing it as the “golden age” for AI. In the fiscal quarter ending in July 2026, Nvidia’s revenue doubled from the same period last year to around 96 billion USD, with gross profits slightly north of 72 billion USD as demand continued to accelerate, and results once again beat records—building on the momentum highlighted in our previous Nvidia earnings report and stock forecast from earlier this year.

Earnings per share (EPS) again beat the consensus at 2.22 USD, although actual dividends per share were still 25c in the last quarter. Nvidia’s current  (PE) ratio is around 30, making it somewhat overvalued by this measure but not very strongly. The company’s market cap is currently around 5.4 trillion USD. Overall, this was another really strong earnings report from Nvidia.

Summary:

Nvidia's latest quarter beat expectations across revenue, profit, and EPS, reaffirming its position as the AI sector's bellwether stock. The results give near-term support to bullish NVDA stock price predictions, even as valuations remain elevated by traditional metrics.

Is the market becoming numb to Nvidia's beats?

I think it’s generally misleading to directly compare this reaction to successive quarters’ earnings reports because it’s impossible to fully account for underlying conditions, market sentiment,  changes in expectations for monetary and, in some cases, governmental policy. That said, I think the narrative of, paraphrasing, “everybody expects Nvidia to crush it so who cares when it actually does” is probably overblown. It's worth noting the market has become much tougher on AI capex overall this earnings season—as I explored in why Big Tech earnings changed everything. Investors are no longer rewarding heavy AI spending unless it's backed by real cash flow or proven demand.

Institutional buying cools even as Nvidia earnings keep beating expectations. Of the top 20 institutional holders of Nvidia’s stock, 12 either reduced their holdings or increased less than 1% in 2026. Source: Nasdaq

It's demonstrably true that the reaction to the second-quarter 2026 earnings was highly positive, but muted compared to what one might expect for another company producing similar results. I think that's partially due to Nvidia’s sheer size: it takes a lot of volume and capital to move the price significantly upward, and I think there's evidence that major institutional shareholders are, on average, scaling back their positions or at least not buying significantly more.

Summary:

Despite another earnings beat, the market's reaction has been comparatively muted, partly reflecting Nvidia's sheer scale. Cooling institutional buying suggests some large holders are taking a more cautious stance even as fundamentals stay strong.

NVDA's post-earnings gap: What the chart is signaling

Although it's fairly common for many individual shares, including Nvidia, to gap up or down around earnings, the gap from 25-27 August was particularly notable, and the largest for some time. As a rough rule of thumb, I expect the gap’s direction to continue for about a week if it's not closed within the first one or two periods, but I stress that this is just a general rule, and there are exceptions.

NVDA's post-earnings gap signals near-term bullish momentum. NVDA gapped up nearly 15 USD after its latest earnings release. Source: Exness MT5

I think the spike in buying volume on 27 August can probably be ignored given the level of institutional involvement, but the impression from moving averages seems positive. Assuming the price doesn’t move back into the same area as the  26-27 August gap, I’d expect another test of highs around 235 USD within the next fortnight or so.

Summary:

Nvidia's sharp post-earnings gap points to short-term bullish momentum, with moving averages supporting a potential test of 235 USD in the coming weeks. As always, this outlook depends on the price holding above the gap zone.

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Final thoughts: What’s next for Nvidia?

Although the picture on the chart seems pretty positive to me, sentiment towards Nvidia can change quickly. I had an informative conversation with Clay about not just Nvidia itself but also possibilities for AI-related shares in general over the next few months, between rising demand,  supply issues facing some key components, and increasing usage of LLMs and other AI tools. If you’re trading indices or major tech shares, don’t miss this week’s Trading Talks.

Disclaimer: This article is for informational purposes only and does not constitute financial or trading advice. Always conduct your own research or consult a licensed financial advisor before making any investment decisions.