Nvidia down about 10% from all-time high: Prominent trader says he sold his shares less than a week before earnings release and will “decide to re-enter” later – NVIDIA (NASDAQ:NVDA)

Shares of Nvidia Corp. NVDAthe poster child of the artificial intelligence revolution, has been subject to some volatility in recent sessions, just like the broader market has recently.

What happened: Steve Grassoa Wall Street trader and market analyst, said Tuesday that he currently has no position in Nvidia. “Just sold the remaining balance of my $NVDA, which currently holds 0. Depending on price action, I will decide whether to re-enter,” he said in a post on X, formerly Twitter.

One of his followers asked him when he would buy the stock again. Grasso said: “It depends on the discount. I’ll let the price run a little longer.”

On Monday, after Nvidia bounced back to $130 from the $103 it fell to during the Aug. 5 market downturn, Grasso announced he had sold 50 percent of his Nvidia shares. The Grasso Global founder said he bought the shares for $100 and would normally have sold 100 percent of them. “I feel like it could still squeeze some juice out of the earnings,” he said.

See also: Best AI Stocks

Why it is important: TThe next big catalyst for Nvidia is on Friday, when the Fed Chairman Jerome Powell is scheduled to speak at the Jackson Hole Symposium. Since the stock has led the market, either on the way up or down, it is likely that Powell’s speech could have an impact on the stock.

An even bigger event to look forward to is Nvidia’s earnings for the second quarter of fiscal 2025, which are scheduled to be released after the market closes on Wednesday, August 28. According to data from Benzinga Pro, the company is widely expected to report earnings of 64 cents per share and revenue of $28.46 billion, up from 25 cents (adjusted for splits) and $13.51 billion last year.

The company has been consistently outperforming high expectations for several quarters and it remains to be seen whether it can continue this winning streak. The stock was recently hit by negative headlines about a possible delay in the launch of the second generation of its B200 accelerator chips. Additionally, China remains a concern given the US chip ban.

The Oppenheimer analyst commented on his expectations Rick Schafer said in a note on Tuesday that it expects positive second-quarter results and a positive outlook for the third quarter, with optimism based on continued demand for AI from cloud service providers and enterprises. The analyst is looking forward to a small-scale launch of the Blackwell 100 accelerators in the fourth quarter, with a significant ramp-up likely in the next quarter.

Nvidia is best positioned in the AI ​​sector, said Schafer, reiterating the “outperform” rating and the price target of $150.

Shares ended Tuesday’s session down 2.12% at $127.25, according to data from Benzinga Pro.

Nvidia is up 157% year to date compared to SPDR S&P 500 ETF Trust’s SPY 18% lead and the iShares Semiconductor ETF‘S SOXX 21% profit.

Image via Nvidia Blog