NVIDIA shares declined 4.3% to $218.15 in afternoon trading after reports raised concerns over its AI compute partnership program and a potential acquisition.
The chipmaker’s stock touched an intraday low of $217.89 and a session high of $229.26. Semiconductor peers including Advanced Micro Devices, Broadcom and Micron also traded lower, while the Nasdaq Composite retreated.
NVIDIA’s financial results for fiscal Q2 2027, scheduled for release on August 26, 2026, are expected to show revenue of $96.2 billion, a 106% increase from the prior year. Adjusted earnings per share are projected at $2.22, up 120% year-over-year. Gross margins are forecast to compress to roughly 71%-72% in the fourth quarter of fiscal 2027 due to rising memory prices.
The Wall Street Journal reported that NVIDIA suspended parts of its AI compute partnership program, an initiative designed to help smaller cloud providers finance NVIDIA-based infrastructure through revenue-sharing agreements. Potential partners objected to NVIDIA’s attempts to exert greater control over client access, while internal employees raised concerns about increased regulatory and antitrust risks.
Separately, a report indicated that NVIDIA agreed to acquire AI model platform Hugging Face for approximately $12.9 billion, adding uncertainty to its capital allocation strategy.
Macroeconomic sentiment weighed on tech equities after Federal Reserve Chair Kevin Warsh delivered hawkish remarks at the Jackson Hole Economic Policy Symposium on August 28, 2026. Warsh warned that inflation remains elevated and underlying trends have not improved sufficiently, reinforcing market expectations for potential interest rate hikes. The two-year Treasury yield rose in response.
NVIDIA’s stock performance reflected a broader pullback in the semiconductor sector amid mixed signals from corporate strategy and macroeconomic policy.
