Nvidia Stock Hits Four-Year Losing Streak Over Financing Concerns
Nvidia shares declined for six consecutive sessions as investors questioned a $500 billion financing plan and lease guarantees for OpenAI.
Shares of Nvidia experienced their longest losing streak in four years, closing at $214.75 on August 22 after six consecutive sessions of decline. The stock has lost 4.7% since August 13, driven by investor anxiety regarding circular financing practices.
The decline follows Nvidia's announcement of a plan to raise over $500 billion alongside partners including BlackRock and Goldman Sachs. This initiative is designed to help customers fund the purchase of Nvidia computing power. Further pressure came from a securities filing showing that Nvidia guaranteed up to $105 billion in lease obligations for an OpenAI campus in Ohio.
Despite the recent slide, market analysts remain optimistic. All 26 analysts tracked by TipRanks maintain a buy rating, with an average price target of $301.82. Bank of America analyst Vivek Arya has set a higher price target of $350.
Investors are now focused on the company's Q2 earnings report scheduled for August 26. Analysts expect earnings of $2.01 per share and revenue guidance of approximately $91 billion.
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