Nvidia Corp. (NVDA) is heading into its earnings report with an unusual cloud hanging over it. The AI chip giant has fallen for seven straight trading sessions, its longest losing streak since 2022. That's not exactly the kind of momentum you want when you're about to face the most scrutinized earnings call on Wall Street.
The stock has slipped toward a key long-term technical support level, and it's got CNBC's Jim Cramer sharpening his pencils. He says he's preparing "a truckload" of questions ahead of the results.
Nvidia Stock Is Approaching a Technical Inflection Point
The seven-day slide has done more than just erase recent gains. It has pushed Nvidia's chart to a level that traders watch closely.
After failing to hold above both its 20-day and 50-day moving averages, Nvidia is now trading almost exactly at its 200-day moving average, near $208. That long-term trendline is widely viewed as a gauge of broader market sentiment, often serving as a key support level during pullbacks.
At the same time, the stock's momentum indicators paint a nuanced picture.
The Relative Strength Index (RSI) has eased to around 48, placing it in neutral territory rather than the oversold zone that often signals selling exhaustion. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator has turned bearish, with both the signal line and histogram pointing to weakening short-term momentum.
Perhaps most notably, Nvidia's decline has not been accompanied by unusually heavy trading volumes. Instead of the sharp, high-volume selling often associated with panic, the chart reflects a more gradual loss of buying momentum heading into earnings.
Taken together, the technical picture suggests Nvidia has reached an important decision point. Whether the 200-day moving average holds, or gives way, could depend largely on what the company says when it reports quarterly results.
Jim Cramer Says Nvidia Is 'Certainly NOT Coming in Hot'
The unusual setup has also caught the attention of market commentators.
CNBC's Jim Cramer wrote on X that he was compiling "a truckload of potential questions" ahead of Nvidia's earnings.
"Yes, I am building up a truckload of potential questions for Nvidia tomorrow night... Seven straight down days??? Certainly NOT coming in hot."
Separately, market commentator The Kobeissi Letter noted Nvidia had officially posted its longest losing streak since 2022, underscoring how rare the recent stretch has been for one of Wall Street's strongest AI performers.
For investors accustomed to Nvidia consistently outperforming expectations, the combination of a rare technical deterioration and heightened scrutiny has raised the stakes ahead of the company's earnings release.
Investment Takeaway
Nvidia's earnings have become market-moving events not just for the company but for the broader AI trade. This time, however, investors are approaching the report with the stock sitting on its 200-day moving average after its longest losing streak in nearly four years.
If management delivers another strong outlook on AI demand, the current support level could reinforce the longer-term uptrend.
But if the results or guidance disappoint, the recent breakdown in short-term momentum may encourage traders to test whether that long-term support can hold.
Nvidia will report second-quarter fiscal year 2027 earnings after market close on Aug. 26.
