Nvidia stock has underperformed the market recently and is stuck in a local correction. It has slumped by 14.26% from its highest point in October. The retreat has coincided with that of companies in the artificial intelligence (AI) space and the falling valuations of its top portfolio companies like OpenAI and Anthropic.
Anthropic is Considering Slashing its Valuation
Anthropic, the world’s largest private company, is facing challenges. Its recently released S1 document showed that its revenue growth, while strong, was starting to lose momentum. It also reported a large loss and plans to spend billions of dollars in its AI rollout in the coming years.
As a result, the company is considering reducing its valuation metrics as it prepares to go public. According to the Wall Street Journal (WSJ), its investors are recommending a valuation target of between $1.5 trillion and $1.6 trillion.
The same trend appears on Polymarket, where market participants assess the possibility of Anthropic reaching a $1.5 trillion valuation by December 31. Such a valuation could also influence Nvidia, given its investment exposure to Anthropic.
OpenAI Slashed its Valuation After Fundraising Flopped
Meanwhile, OpenAI, the creator of ChatGPT, recently slashed its valuation from $1.4 trillion to $1.25 trillion as its investors pushed back. The company was targeting a capital raise of $30 billion, but instead received $11 billion from investors.
A $1.4 trillion valuation would have generated more value for Nvidia, a company that invested over $30 billion in it.
These events are happening as investors remain concerned about valuations of AI companies. For example, Firmus, a data center company, recently pulled its IPO as investors raised concerns about its valuation.
The same is happening with companies that Nvidia has invested in. On Monday, Marvell Technology and Lumentum stocks tumbled by double digits after announcing a mega merger. Lumentum dropped because the $115 billion combination will be financed by Marvell stock.
Top neocloud companies, which Nvidia has invested in, including popular names like CoreWeave, IREN, and Nebius have all plunged in the past few months.
AMD to Publish it Earnings
Nvidia stock has mostly underperformed the market during this earnings season. It dropped last week when Intel reported results showing its business deteriorated last quarter.
The next important company to watch is Advanced Micro Devices, which will report its numbers on Tuesday. These results will provide hints on the health of the data center industry and whether it is gaining market share.
Yahoo Finance data show that analysts expect its revenue to jump 41.6% in the third quarter to $13 billion. If its earnings are strong, it may help to boost the other big names in the AI industry, including Nvidia.
Nvidia Stock Price Technical Analysis
The daily chart shows that the NVDA stock price suffered a big reversal after hitting a record high of $243 in October. It has made a series of lower lows in this period, with bears coming in whenever it attempted to bounce back.
The stock is now between the 38.2% and 50% Fibonacci Retracement levels. It has also slumped below the 50-day moving average, a sign that bears remain in control. Therefore, the most likely NVDA stock forecast is bearish, with the next level being at $200.
However, there is also a possibility that the stock will rebound after the US midterm elections as investors buy the dip. Such a move may see it rally to $220.
This article provides market information, not investment advice. Stock investing involves volatility and potential capital losses.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
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