How Nvidia Stock Finally Snapped Its Post-Earnings Losing Streak -- Barrons.com

By Adam Clark

It's fifth time lucky for Nvidia. After a run of four quarterly earnings reports which saw the stock slump in the following trading session, the chip maker finally appears to have hit on a winner by overturning assumptions about how fast it can grow.

Nvidia's main problem has been skepticism that a company worth more than $5 trillion has room to run. CEO Jensen Huang said it could double sales if it weren't for supply constraints.

If that wasn't enough, Nvidia also addressed concerns about its biggest clients turning to custom chips to replace its hardware. An expanded partnership with Amazon.com will see the e-commerce giant deploy an additional two million Nvidia processors.

That won the market over. Nvidia shares were up 7.3% at $224.91 in Thursday's premarket.

It wasn't a flawless report. Skeptics will focus on a gross margin set to decline due to soaring memory prices and the use of Nvidia's balance sheet to guarantee customers' debt, alongside extending payment terms for some customers. But Barron's has argued that's a smart tactic, guaranteeing long-term demand.

"We know some will call this circular financing. We see it differently," Nvidia CFO Colette Kress said. "The equity returns on our invested capital will be excellent."

And Nvidia doesn't look to be resting on its laurels. The company has agreed to buy Hugging Face-an AI development platform-for $12.9 billion, technology-focused news outlet The Information reported Wednesday, citing a person familiar with the matter.

Nvidia didn't immediately respond to a request for comment on the report early Thursday.

Write to Adam Clark at adam.clark@barrons.com

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August 27, 2026 07:29 ET (11:29 GMT)