- Nvidia's stock fell over 2% on Monday, pacing for its seventh-straight day of declines as anxiety heading into the AI chipmaker's Wednesday earnings call appears to be concerning investors.
- Nvidia told its biggest customers it would hike prices as much as 15% next year for servers with its AI chips due to rising memory costs.
- Nvidia is set to report its second quarter earnings on Wednesday after the bell, a highly anticipated report after other AI giants missed their quarterly projections.
- The decline also comes amid a broader slide in semiconductor stocks, with AMD, TSMC, and Broadcom all falling on Monday, and the Philadelphia Semiconductor Index sliding 2.7%.
- Nvidia's slump also comes as some critics question its practice of inking deals, such as taking equity stakes in companies like OpenAI and Anthropic that also serve as some of its largest customers.
- Nvidia's trading price of just under $210 as of around 1 p.m. EDT on Monday marked a more than 2.2% drop on the day, with the stock down nearly 7% over the seven-day streak of declines.
- Many Wall Street analysts are still bullish on Nvidia, which has achieved astounding success to become the largest company by market cap in the world, worth roughly $5 trillion.
- At least one analyst at Cantor Fitzgerald told investors they expected the stock to begin climbing again very fast, with a target price of $350—about 67% higher than it was trading on Monday.
- We estimate Nvidia CEO Jensen Huang's net worth at $181.7 billion, making him the eighth-wealthiest person in the world as of Monday.
Nvidia's stock has seen a significant decline, dropping nearly 7% over the past week, with a trading price of just under $210 as of Monday afternoon. This downturn comes as investors await the company's second quarter earnings report on Wednesday, following disappointing results from other AI firms.123
The anticipated earnings call is crucial, especially after competitors like AMD and TSMC also faced declines, contributing to a 2.7% drop in the Philadelphia Semiconductor Index. Despite the recent slump, Nvidia's stock remains up over 11% year-to-date, reflecting its strong market position as the largest company by market cap, valued at approximately $5 trillion.47
In a strategic move, Nvidia plans to increase prices for its AI chip servers by up to 15% next year, citing rising memory costs. This decision has raised eyebrows among critics who question the company's business practices, including its equity stakes in major clients like OpenAI and Anthropic.
Despite the current challenges, analysts remain optimistic, with one from Cantor Fitzgerald projecting a target price of $350, indicating a potential 67% increase from Monday's trading levels. Nvidia CEO Jensen Huang has seen his net worth drop by $3.8 billion amid the stock's decline, yet he remains the eighth-wealthiest person globally, with a net worth of $181.7 billion.8910
“The stock is down nearly 7% over the streak, trading just under $210, while the Philadelphia Semiconductor Index slid 2.7% as AMD, TSMC, and Broadcom also fell. Analysts remain bullish, with Cantor Fitzgerald setting a $350 target, about 67% above Monday's price.”
Forbes
