By Zev Fima
Publication Date: 2026-08-24 19:51:00
Nvidia , the poster child of the AI trade, will report earnings Wednesday night. The fundamentals and the charts suggest investors should proceed with caution. For a variety of reasons, sentiment around the AI buildout beneficiaries has started to sour. Pushback on data centers has become a key topic heading into the midterms. Memory bottlenecks are also driving up the cost for each additional gigawatt of compute. Plus, declining costs for each unit of AI compute, known as tokens, are calling into question the ability of proprietary AI labs, namely OpenAI and Anthropic, to make good on their massive financial obligations. The result is that Nvidia went from registering its highest close since mid-May on Aug. 13 to a seven-day losing streak, including Monday’s decline. It’s fallen over 7% in this rough patch, underperforming the tech-heavy Nasdaq’s roughly 3% pullback. From a technical point of view, Nvidia’s stock is now hovering near several key points of interest. That makes the upcoming earnings release all the more important from a sentiment and near-term trading perspective. The market will be paying close attention, of course. Nvidia is the most valuable company in the world and the ringleader of the AI trade. As the company invests in other members of the AI ecosystem and helps arrange financing for data center construction, it’s been dubbed the “central bank of AI.” That makes CEO Jensen Huang something of the AI Fed chair. When Huang talks, we, and the rest of…
