Nvidia's stock was down well over 2% on Monday afternoon, 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 reports its second quarter earnings on Wednesday after the bell—a highly anticipated report after other AI giants missed their quarterly projections, including Meta, which reported missing its earnings projections in July.
Over the weekend, Bloomberg first reported Nvidia told its biggest customers it would be hiking prices as much as 15% next year for servers with its AI chips due to rising memory costs.
It 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 "circular financing" deals, such as taking equity stakes in companies like OpenAI and Anthropic that also serve as some of its largest customers, as well as growing political backlash to the AI data center buildout needed to power the technology.
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. The company's stock is also still up about more than 11%% year-to-date, despite the recent slump. At least one analyst at Cantor Fitzgerald told investors in a research note on Monday they expected the stock to begin climbing again very fast, MarketWatch first reported. The analyst put 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. Huang owns about 3% of Nvidia, and his net worth fell by about $3.8 billion as the company's stock tumbled on Monday.
Nvidia Stock Loses $130 Billion In Market Value As Firm Reportedly Enters $500 Billion AI Financing Deal
This article was originally published on Forbes.com