Nvidia Under Pressure to Meet Unyielding Investor Expectations

AMD and SanDisk delivered impressive earnings beats this week, but their stocks still fell. AMD posted record revenue up 50% year over year, with data center revenue more than doubling. Its CEO Lisa Su said she expects 'Data Center sales to accelerate in the second half of 2026.'

SanDisk's earnings report was similar, with EPS beating consensus by over 12%, revenue growing by a whopping 372% year over year, and gross margins holding at 78%. Despite these impressive numbers, shares still fell roughly 10%, due to guidance for the coming quarter being slightly below more bullish estimates.

The market reactions to AMD and SanDisk allow us to focus on Nvidia's upcoming earnings report. With its Q2 fiscal 2027 revenue guided to approximately $91 billion, which would mark an 11.5% sequential increase and roughly 80% annual growth, investors will heavily rely on guidance including commentary on supply constraints that could lessen deliveries.

Nvidia's bar is set equally high as AMD and SanDisk, with investors expecting absolute perfection in both what happened and what will happen. The market will test Nvidia's ability to meet these expectations, with a 10-15% surge possible if they exceed investor demands, or a struggle like AMD and SanDisk if they fall short.

Fed Speakers Richmond Fed President Tom Barkin speaks at 10:00 a.m. ET, ninety minutes after the payroll print, but Nvidia's earnings report is still top of mind for investors.