NVDA Stock Soars on Explosive AI Demand—Is Nvidia the Next $3 Trillion Tech Giant?

Nvidia (NASDAQ: NVDA) shares slipped another 3 % in Wednesday’s pre-market session, extending a two-day pullback that has erased roughly $155 billion in market value and weighed on the broader tech sector. NVDA STOCK WEAKNESS AHEAD OF AUG. 27 EARNINGS The sell-off comes just a week before Nvidia reports fiscal Q2 2026 results on August 27—an event many traders view as the next major catalyst. Wall Street expects revenue to surge more than 80 % year over year, powered by relentless demand for AI accelerators in data-center build-outs. ANALYSTS REMAIN BULLISH DESPITE THE DIP • Morgan Stanley reiterated NVDA as its “Top Pick,” arguing the stock is still the most under-owned megacap in the market despite a $4 trillion valuation. • The Motley Fool predicts shares could “jump higher after Aug. 27” if guidance confirms management’s bullish outlook. • Price targets keep inching up—BofA now sees $235, while Melius Research boosted its call to $250. WHY THE STOCK IS FALLING NOW Short-term pressure stems from profit-taking after NVDA’s 45 % summer run, concerns about tighter export rules on AI chips to China, and a rotation into beaten-down cyclical names. Reports that Nvidia is developing a lower-powered “Blackwell-Lite” GPU to comply with U.S. regulations highlight the company’s delicate geopolitical balancing act. KEY NUMBERS TO WATCH ON AUG. 27 • Data-center revenue: Street consensus ≈ $21 billion • Gross margin: expected 78–79 % • FY 2026 revenue guidance: whispers north of $100 billion • Update on Blackwell chip ramp and capacity additions at TSMC/Samsung WHAT IT MEANS FOR INVESTORS Historically, NVDA has rallied an average 6 % in the week following earnings beats. Options markets imply an 8 % move this time. Long-term bulls view any dip toward the 50-day moving average (~$170) as a buying opportunity, citing a multiyear upgrade cycle in generative AI, autonomous vehicles, and edge computing. BOTTOM LINE Today’s slide looks more like a healthy breather than the end of Nvidia’s AI leadership story. If management delivers another blockbuster quarter and quells export-control worries, NVDA stock could quickly reclaim recent highs and resume its march toward Wall Street’s $200-plus targets.