Nvidia (NVDA) stock closed at $212.6 on May 27, down 9.81% from its highest closing price of $235.74 on May 14.

The dip comes as a result of a common pattern of volatility for the stock near its earnings report. Nvidia reported its first quarter (Q1) fiscal year 2027 earnings on May 20.

Nvidia did two things to try to prevent the dip.

The company confirmed an additional $80.0 billion in share repurchase authorization and increased its quarterly cash dividend from $0.01 per share to $0.25 per share, yet both measures failed.

Bank of America identified the likely cause of the dip. Following the earnings report release, the bank noted that the $91 billion Q2 outlook is in line with bullish expectations, likely leading to the…