Nvidia (NASDAQ: NVDA) is entering August with one of the strongest seasonal setups in its history while approaching a key technical support level ahead of what could be another record-breaking earnings report.
In this line, seasonality data from the past 20 years shows August has been Nvidia’s strongest month, with the stock posting gains in approximately 80% of observed periods, according to insights shared by charting platform TrendSpider on August 3.
By comparison, Nvidia recorded positive returns in roughly 71% of May periods, 70% of February and November periods, and 65% of September periods.
The timing is notable because Nvidia enters August following a pullback from recent highs. Historically, periods when the stock approached major support levels ahead of its strongest seasonal month have often attracted renewed buying interest.
The seasonal trend is also significant because it coincides with Nvidia’s quarterly earnings cycle, which has frequently acted as a catalyst for upside moves when results exceeded Wall Street expectations.
Nvidia’s key technical outlook
Beyond seasonality, Nvidia is testing a critical technical level. The stock has returned to its 200 EMA, a long-term trend indicator closely watched by institutional investors. Previous tests of this support level in 2026 attracted buyers and were followed by strong rallies.
The latest pullback has brought NVDA back near this zone, with the stock trading around $200 and the 200 EMA near $191. Historically, rebounds from the 200 EMA during broader uptrends have often presented attractive entry points for long-term investors.
Importantly, Nvidia remains well above pre-AI boom levels and continues to trade within a long-term bullish structure.
Impact of Nvidia earnings
The next major catalyst for the stock is its fiscal second-quarter 2027 earnings report, scheduled for August 26.
Management previously guided for revenue of approximately $91 billion. Wall Street expects revenue between $91 billion and $94 billion, with adjusted earnings per share of roughly $2.08 to $2.12.
Nvidia has consistently exceeded analyst expectations throughout the AI boom, driven by strong demand for its Blackwell AI systems, networking products, and data center infrastructure.
Some industry analysts also expect stronger second-half growth as supply constraints ease and next-generation Vera Rubin systems begin contributing to revenue.
The investment case remains tied to Nvidia’s dominance in AI infrastructure. The company generated a record $215.9 billion in revenue during fiscal 2026, up 65% year over year. Revenue accelerated further in the first quarter of fiscal 2027, reaching $81.6 billion, an 85% increase from a year earlier.
Data center revenue accounted for more than 90% of total sales, underscoring Nvidia’s leadership in AI training, inference, networking, and accelerated computing.
Profitability remains exceptionally strong, with gross margins around 75%. Nvidia has also continued returning capital to shareholders through dividend increases and an expanded $80 billion share repurchase authorization.
