Top Strategist Warns Nvidia’s Earnings on Wednesday Could Hit the Entire Market

Nvidia plans to raise prices for its Vera Rubin and Grace Blackwell systems by up to 15% next year due to rising memory costs, according to Bloomberg sources. The increases will affect hyperscalers like Microsoft, Google, and Oracle. Nvidia's AI accelerators remain in high demand but short supply, with production lagging behind demand. Goldman Sachs forecasts AI capital expenditure among hyperscalers to exceed $1 trillion next year.

Sam Altman, CEO of OpenAI, admitted he overestimated the speed of AI's economic disruption, noting society adapts more slowly than anticipated. He believes this slower pace is beneficial for a smoother transition. Nvidia is positioning itself as a 'buyer of last resort' for its GPUs, investing $7 billion in AI startup Poolside to support internal demand. Altman also criticized competitors' doomsday marketing around AI safety.

Coinbase launched tokenized stocks on Base, offering Nvidia, Meta, Apple, and Google. These tokens, backed 1:1 by shares, operate 24/7 on the B20 standard. Coinbase aims to compete in the $3B tokenized equities market, led by Ondo Finance, Kraken, and Binance. The company plans to leverage its ecosystem to drive adoption and volume.

Nvidia (NVDA) is expected to exceed its own Q2 revenue guidance of $9.1B, with analysts forecasting a beat. Supply constraints, not demand, are the main challenge. Wedbush and UBS highlight strong supply chain commitments and favorable pricing. Hyperscaler spending and AI demand remain robust. Bank of America notes Nvidia's strategic risks and potential valuation gap.

Nvidia plans to invest $7 billion to license Poolside's AI technology and hire its engineers, aiming to develop open-source AI models. The deal positions Nvidia to compete against OpenAI and Anthropic, as well as China's advanced open-source models. Nvidia has also formed alliances to promote open-source AI, including the Open Secure AI Alliance and the Nemotron Coalition.

Taiwan charged nine people, including employees from Nvidia (NVDA) and Super Micro (SMCI), for illegally exporting AI servers to China, violating U.S. export controls. The servers, including banned B300 GPUs, were shipped through various routes. Nvidia and Super Micro are cooperating with authorities. Prosecutors seek maximum sentences for four defendants, including an Nvidia manager.