Nvidia stock (NASDAQ: NVDA) enters a pivotal week near $215 after five consecutive declines, with investors weighing a reported move to deepen its relationship with AI search startup Perplexity just days before quarterly earnings. Shares closed Friday at $214.72, down almost 5% from Monday's close, as higher bond yields and renewed doubts over the AI trade pressured semiconductor names.
Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), the US chipmaker, is in talks to invest in Perplexity as part of a funding round that would value the artificial intelligence startup at more than $30 billion, The Information reported on Sunday. The report, citing people with knowledge of the discussions, said the round would lift Perplexity's valuation by more than 50% from its previous financing a year ago.
Nvidia's results could send shock waves through the tech sector—and the broader stock market.
The price hikes will reportedly go into effect on systems shipped early next year and will impact systems including those with the flagship Vera Rubin and Grace Blackwell chips.
Nvidia is expected to nearly double last year's second-quarter earnings. It's a big week for economic news, all of which will be capped off with Kevin Warsh's speech at Jackson Hole on Friday.
Nvidia (NVDA) earnings on Wednesday are the week's pivotal event, with options pricing in a 6% share move and sector-wide implications. Key NVDA watchpoints include AI infrastructure demand, product ramp timing, China exposure, and economics of new financing partnerships.
The AI boom is producing an unusual side effect: The machines being built to power artificial intelligence are making other technology more expensive.
Ahead of its highly anticipated August 26 earnings report, Nvidia (NASDAQ: NVDA) stock has extended its decline to six consecutive sessions.
Nvidia was once nearly synonymous with the artificial-intelligence build-out. Now, there are a handful of other AI companies capturing investor attention as they rake in hefty profits.
Nvidia faces elevated expectations ahead of earnings, with the market pricing in strong growth and a high bar for outperformance. Options and technical analysis indicate asymmetric post-earnings risk, with limited upside and potential for a sharp decline to $190 support. Positive gamma positioning may cap NVDA's upside while slowing initial declines, but a break below $210 could accelerate downside volatility.
Anxious about Nvidia's results? You're likely not alone.
Nvidia stock price dropped sharply last week as traders refocused on the upcoming earnings report that will provide insights into its revenue and profitability growth. NVDA will also react to news on GPU price hikes, which may boost its revenue in the foreseeable future.