Nvidia's Earnings Call Looms as Stock Tumbles to Seventh Straight Loss

Nvidia's stock price took another hit on Monday, falling over 2% in a seventh-straight day of declines ahead of its upcoming earnings call. The AI chipmaker is set to report its second-quarter results on Wednesday after the bell, following a period of uncertainty and missed projections from other AI giants.

The slump comes as Nvidia faces increasing scrutiny over its pricing strategy, with reports emerging that it plans to hike prices by up to 15% for servers equipped with its AI chips due to rising memory costs. This move has added to the broader slide in semiconductor stocks, with AMD, TSMC, and Broadcom all falling on Monday.

Some critics have also questioned Nvidia's practice of engaging in 'circular financing' deals, such as investing in companies like OpenAI and Anthropic that are among its largest customers. The move has sparked growing political backlash against the AI data center buildout needed to power the technology.

Despite the recent downturn, many Wall Street analysts remain bullish on Nvidia, with at least one analyst at Cantor Fitzgerald predicting a swift recovery and setting a target price of $350, roughly 67% higher than Monday's trading price.