Two Stocks Are Quietly Beating Nvidia, and Wall Street Wants Them 30% Higher
Nvidia stock (NVDA) is trading near record highs at $225.30, up about 7% this week, ahead of its August 26 earnings report. Yet history carries a warning. The stock has dropped the day after earnings six times since August 2024, and each time its own chipmaker, Taiwan Semiconductor (TSM), took the hit better.
Analysts now rate TSMC a Strong Buy with about 27% upside. And a second supplier, Ciena (CIEN), has outrun Nvidia sixteen times over this past year. Here is why the pattern could repeat, and who wins if it does.
Why Nvidia Stock Could Fall Again on August 26
February 26, 2026 shows how it happens. Nvidia beat estimates with $1.62 per share, grew revenue 94% to $68.13 billion and guided above forecasts. The stock still dropped 5%.
Why?
Investors fixated on two things the beat could not fix. Nvidia was earning slightly less on each sale, and its China outlook had been cut to zero.
However, those same pressures are back, and the bar now sits higher. Nvidia has promised about $91 billion in revenue, but Bank of America expects $94 to $95 billion. Anything short of a large beat now counts as a letdown.
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