Nvidia Earnings: A History of Disappointing Expectations

Nvidia is set to release its fiscal second-quarter operating results on August 26. Historically, the company has crushed Wall Street's consensus sales and profit estimates, but this quarter may not be enough to drive its valuation higher.

The company's graphics processing units (GPUs) are superior, and its competitors have been unable to match or surpass their compute capabilities. As a result, Nvidia has consistently raked in a gross margin of around 75%. However, investors' expectations have often been too lofty, leading to multiday losing streaks after the company reports its earnings.

In fact, following each of Nvidia's previous four earnings releases, its shares have endured at least a two-day losing streak. This trend suggests that, despite its impressive sales and profit figures, the company may not be able to satisfy investors' expectations this quarter either.