Nvidia. [Reuters]
Nvidia. [Reuters]

Nvidia shares fell for a seventh consecutive session Monday (local time) on the New York Stock Exchange, as caution over AI investment broadly deepened ahead of the chipmaker's earnings release, Bloomberg reported.

The stock closed down 2.9 percent at $208.48, extending a losing streak that began Aug. 14. The cumulative decline over the seven sessions reached 7.5 percent.

The seven-session losing streak is the longest for Nvidia since September 2022 — the first such run in roughly four years.

Several headwinds have converged to weigh on the share price.

Reports emerged Saturday that Nvidia had notified customers it would raise prices on AI servers set for release next year by as much as 15 percent, citing higher memory chip costs. Criticism has also mounted over the company's so-called circular financing model — taking equity stakes in major customers such as OpenAI and Anthropic — while growing political resistance to AI data center construction has added further pressure, analysts said.

The rotation away from Nvidia and AI-related stocks has continued even as some technology shares have recently rebounded.

The Philadelphia Semiconductor index fell 2.7 percent Monday. Semiconductor stocks dropped across the board — AMD lost 3.5 percent, Broadcom fell 2.6 percent, Micron slid 5.8 percent and SanDisk dropped 6.5 percent. Neo-cloud companies CoreWeave and Nebius Group also declined, falling 1.8 percent and 3.8 percent, respectively.

Bloomberg said the 40-day correlation between Goldman Sachs's AI stock basket and the S&P 500 excluding AI names had fallen to around -0.6, the deepest negative correlation on record.

The development signals that money flowing out of AI stocks is rotating into other equities rather than leaving the market altogether, Bloomberg said.

Bloomberg cautioned, however, that the AI narrative itself has not broken down. AI infrastructure companies still account for roughly half of S&P 500 earnings growth, and the median earnings growth rate across all companies reached 14 percent last quarter, pointing to a broadening foundation.

Nvidia's earnings release, scheduled for Wednesday, is widely seen as a bellwether for the direction of AI-related stocks broadly.

Bloomberg described the results from Nvidia — the world's largest company by market capitalization — as "the closest thing to a quarterly referendum on AI stocks."


yckim6452@heraldcorp.com