NVIDIA Doubled From Lows: While Other Stocks Struggled This Earnings Season?

Yesterday, both the S&P 500 and Nasdaq hit fresh all-time highs. Yet investors are asking the obvious question: if earnings reports have generally been disappointing, why is the market still going up?

According to the latest data, the S&P 500's net profit margin for Q2 2025 is 12.3% — down from 12.7% in the previous quarter, but still higher than 12.2% a year ago and above the 5-year average of 11.8%. This marks the fifth consecutive quarter with profit margins above 12%, a streak only seen previously between Q2 2021 and Q2 2022. However, this is also the first quarter-on-quarter decline since Q4 2023.

Looking at individual company earnings, poor results often led to steep drops, while beats mostly brought only mild gains.

1. Semiconductors: All but NVDA and AMD Crumbled

AI favorites $NVIDIA(NVDA)$ and $Advanced Micro Devices(AMD)$ continued to rally, boosted by Trump’s "AI Action Plan."

NVIDIA has doubled in just three months, rising from $86. The last time we saw a similar surge was between April and June last year — followed by a pullback in July. Will history repeat itself?

However, most chip stocks missed and were dumped.

• $ASML Holding NV(ASML)$: Missed expectations; stock dropped 14% over three days after earnings.

• $Taiwan Semiconductor Manufacturing(TSM)$ : Strong earnings beat; up 3% on the day, but followed by three straight days of decline.

• $Texas Instruments(TXN)$ : Fell 13% due to vague guidance and lack of confidence from management.

• $STMicroelectronics NV(STM)$ : Plunged nearly 16%, dragged down by weakness in automotive chips.

2. Big Tech: Less Surprise Than Expected

• $Netflix(NFLX)$ : Down 5% post-earnings, entering a short-term downtrend.

• $Alphabet(GOOG)$ : Solid earnings, but shares rose only 1% — far below the expected 5% post-earnings swing.

• $Tesla Motors(TSLA)$ : Dropped 8%; earnings lacked surprise, and core EV fundamentals remain weak, with no new narrative to support momentum.

3. Software: A Mixed Bag

• $IBM(IBM)$ : Missed revenue growth expectations; stock dropped 10%.

• $ServiceNow(NOW)$ : Beat estimates and raised full-year guidance; shares climbed 4%.

• $SAP SE(SAP)$ : Fell 5% after earnings.

4. Consumer Staples: Clear Divergence

• $Pepsi(PEP)$ : Up 7%, strong performance.

• $Chipotle Mexican Grill(CMG)$ : Crashed 12% — are consumers getting priced out of burritos?

• $Nike(NKE)$ : Gained 10% last quarter and maintained solid momentum.

Looking back at this earnings season, most companies struggled to post large gains. Even this morning, pre-market drops from $UnitedHealth(UNH)$ and $Spotify Technology S.A.(SPOT)$ suggest that market momentum may be running out of steam.

Discussion:

• After doubling in three months, can NVIDIA keep climbing, or will it face a pullback like last year?

• This earnings season offered mixed results, yet markets keep hitting new highs — how long can this disconnect last?

• Are sport brands worth buying like $Nike(NKE)$ and $Deckers Outdoor(DECK)$?

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