Nvidia Earnings Report Could Spark Asymmetric Reaction

A recent trend in tech markets is sparking attention from Goldman Sachs analysts. Large-cap mutual funds are significantly underweight Nvidia, which could create an asymmetric reaction function to the company's upcoming earnings report.

Nvidia isn't alone; AMD, Alphabet, and Microsoft also have notable underweight positions among major AI-related stocks tracked by the firm.

The de-risking trend accelerated in June and July 2026, with market participants reducing gross and net exposures across tech and AI names.

Goldman Sachs' semiconductor analyst maintains a Buy rating on Nvidia with a $285 price target, citing tight supply conditions and upside potential even after recent stock price gains.