Nvidia Stock Faces Uncertain September Amid AI Infrastructure Risks

Nvidia's recent financial results for its fiscal 2027 second quarter were impressive, with revenue up 106% to $96.2 billion and diluted earnings per share soaring 128% to $2.46. These figures came in ahead of Wall Street estimates, sending shares up 8% since the announcement.

Historically, September has been a weak month for the S&P 500 index, with an average loss of 1.3% over the past decade. Nvidia's price also declined by an average of 0.8% during this period.

Despite these historical trends, Nvidia remains a dominant player in the AI market, with exceptional growth and profitability. The company's supply-and-demand imbalance is supporting sustained pricing power, resulting in a 62% net profit margin in the second quarter.

The main risk facing the business is the possibility that AI infrastructure spending cools sooner than expected. Chief Financial Officer Colette Kress mentioned on the Q2 2027 earnings call that the five top hyperscalers will spend $1.3 trillion on capital expenditures in 2027.