Nvidia stock dropped 4.42% to close at $225.32 on May 15, according to Detik Finance.

The decline came as most semiconductor stocks fell following a US-China summit that ended without major chip trade agreements.

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Market volatility increased after UBS analysts issued a warning on semiconductor assets and Magnificent 7 equities.

The downturn occurred just days before Nvidia's first-quarter fiscal year 2027 earnings report, scheduled for release on May 20.

Historical Patterns and CEO Remarks

Nvidia typically experiences price swings before its quarterly announcements, even when it beats market forecasts. CEO Jensen Huang previously addressed this cyclical behavior during an internal meeting.

"If we delivered a bad quarter, it is evidence there's an AI bubble. If we delivered a great quarter, we are fueling the AI bubble," Huang said.

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The broader semiconductor sector began recovering in late March 2026.

This recovery was driven by higher capital expenditure forecasts from hyperscalers, revised server CPU sales estimates from Bank of America, and strong initial earnings from Intel.

Analyst Upgrades Ahead of Earnings

Financial institutions are adjusting their price targets for Nvidia as the earnings date approaches.

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Keybanc analyst John Vinh raised his growth estimates, citing expected increases in shipments of next-generation hardware.

Vinh projected sequential quarterly revenue growth of $5 billion to $7 billion, driven by a 150,000 to 200,000 unit increase in Blackwell GPU shipments.

He raised his first-quarter revenue estimate to $80.8 billion and second-quarter estimate to $89.5 billion.

These figures exceed Wall Street consensus estimates of $78.8 billion and $86.9 billion.

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Nvidia's official guidance for Q1 FY2027 projects total revenue of $78.0 billion and GAAP operating expenses of approximately $7.7 billion.