The quarterly report release caused a drop in Nvidia stock prices

Brief on the Nvidia stock situation

Topic: What happened – market reaction after the quarterly report
On the first day of trading, the price fell almost 5.5 %. This was the biggest drop since April last year.

Reasons for the price decline
• Difficulties with the Nvidia‑OpenAI deal (originally $100 million → now $20 million).
• The annual report states that the agreement may not materialize.
• No concrete plans to reshape the business around AI inference.

Impact on other companies
Broadcom shares fell more than 3 %, and TSMC by about 2.8 %.

Why investors did not see growth

1. Issues with OpenAI
* The investment agreement was revised down to $20 million (five times less).
* In the 10‑K form, Nvidia warns that the deal may not go through.

2. Lack of detail in the report
* Management issued a more optimistic revenue forecast but did not disclose how they plan to monetize AI.
* Fundstrat experts note that the stock is currently driven by emotions rather than fundamentals.

3. Inference problems
* The Vera Rubin accelerator architecture is designed for inference, but the company has yet to explain how this fits into its current business plan.
* Clarifications may appear at GTC 2026.

Impact of cloud providers
- Key customers are cloud giants.
- Last year Nvidia’s revenue was 36 % from just two providers.
- If they have free funds, they will keep buying accelerators, directly supporting Nvidia’s financial stability.

Analyst stance
Metric | Data
---|---
Number of analysts | 66 tracking Nvidia shares
Buy recommendations | 61 (≈92 %)
Expected price increase | +37 % from current level

Conclusion
On the eve of quarterly data, experts predicted a decline in shares, and the market confirmed this trend. Key factors were the uncertainty around the OpenAI deal, lack of a detailed AI inference plan, and the strong influence of cloud providers on revenue. Despite this, most analysts remain optimistic and recommend investing in Nvidia stock.