Reality Check
August 27, 2026

History favors buying $NVDA after a +6.2% post-earnings gap.

Every comparable gap since 1999, and what followed.

NVDA reported fiscal Q2 earnings after the close on August 26, 2026, and the stock gapped up +6.16% the next morning. VIX was at 15.21 that evening, so this happened in a low VIX environment.

In general, NVDA gaps up after earnings 61.8% of the time (68 times out of 110 earnings reports since May 1999) so this wasn’t unexpected.

The size of the gap was about average. A gap up of 6.16% vs its average gap up of +5.67%.

Forward returns - After Any Gap Up

What follows an NVDA earnings gap up
NVDA earnings gap ups from May 1999 to August 2026.
Time FrameAny gap upGreen/Red Frequency
1 week+0.58%▲52.2% / ▼47.8%
1 month+3.29%▲61.2% / ▼38.8%
3 months+9.18%▲67.2% / ▼32.8%
Before next earnings+10.98%▲67.2% / ▼32.8%

After any gap up, NVDA is higher at every time frame, ending higher by a median return of 9.18% after 3 months.

Forward returns - After Comparable Gap Ups

Gap SessionGapVIX1 Week1 Month3 MonthsBefore next earnings
August 12, 2005+5.86%12.4−2.37%+10.51%+12.00%+16.29%
February 17, 2006+7.37%11.5−6.25%+0.21%−3.98%+12.36%
May 11, 2007+5.39%13.6+1.25%+4.94%+27.18%+33.36%
August 7, 2009+5.43%25.7−2.98%+12.26%−11.31%−11.31%
November 6, 2009+6.29%25.4+3.99%+17.42%+23.16%+36.81%
February 12, 2015+5.71%17.0+1.55%+4.40%−3.24%+2.24%
February 15, 2019+5.45%16.2−2.61%+7.83%−3.94%−1.70%
August 16, 2019+7.11%21.2+1.94%+13.63%+31.65%+31.65%
February 14, 2020+6.09%14.2−4.87%−24.37%+18.23%+22.19%
August 24, 2023+6.58%16.0−1.71%−15.92%−2.99%−0.54%
May 29, 2025+5.52%19.3−1.59%+11.07%+26.66%+27.66%
November 20, 2025+5.06%23.7−9.67%−6.26%−1.58%−0.20%

The 12 comparable gaps had an average return of 14.07% higher by the next earnings.

Forward returns - After Gap Ups in Comparable VIX Regimes

Time FrameGap up, VIX < 20Green/Red Frequency
1 week−0.11%▲50.0% / ▼50.0%
1 month+1.32%▲60.0% / ▼40.0%
3 months+7.49%▲65.0% / ▼35.0%
Before next earnings+8.67%▲65.0% / ▼35.0%

After a gap up in a low VIX environment NVDA typically moves higher heading into the next earnings.

The forward return calculations in this article begin at the 9:30am open the next morning after the stock has already gapped up, so the gap is not part of the forward calculations.

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