Nvidia (NVDA) trades near record highs at $225.30 ahead of its August 26 earnings report, but the stock has fallen the day after results six times since August 2024. Its chipmaker supplier Taiwan Semiconductor (TSMC) has consistently absorbed the shocks better, with an average drop of just 1.76% versus Nvidia’s 4.34%, and analysts rate it a Strong Buy with a $545.67 target, about 27% upside. The other winner is Ciena (CIEN), whose market value surged 375% in one year against Nvidia’s 23%, driven by 40% quarterly revenue growth and $7 billion in orders waiting to be filled. The pattern suggests investors seeking protection from Nvidia’s earnings volatility should consider the infrastructure suppliers powering the AI race.
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