$NVDA · The Investor Channel · 2026-11-06

Now, we eagerly await Nvidia's earnings, which will be released soon.

In my opinion, this is the biggest reason behind the decline in semiconductor stock prices , and more importantly, Neo Cloud stock prices this week.

Turning to Nvidia, its stock started the week at around $204, then fell for most of the week by nearly 9% to close at $187, as the company appears to be under pressure with its earnings announcement coming in about a week.

Reuters reported this week that Nvidia chips are piling up in Hong Kong as China continues to refuse to approve imports. Clearly, this has not yielded the desired results for Nvidia.

The company will face many questions on this subject as the earnings announcement date approaches in just over a week.

They will also be asked about Neo clouds. This is a sector of the company's business, and as evidenced by its financial data, Nvidia has begun separating its Neo clouds and telling investors that they will be its fastest-growing segment.

Shares in these cloud companies have fallen sharply this week as scrutiny of their capital-raising operations has increased, and perhaps also from a regulatory standpoint, as their ability to build more data centers, which will almost certainly house Nvidia graphics processing units, is subject to further scrutiny and, more importantly, further doubt .

It will be a crucial week as Nvidia's earnings announcement approaches next week, and we will see how the market reacts, but there are probably still more questions than answers.

Now , Nvidia is requiring its cloud computing customers to sell at least 51% of their products to customers outside of China. This specifically concerns Neo cloud service customers.

These customers, if they have access to Nvidia graphics processing units, can sell them for a price that may be two or three times, and perhaps even four or five times, compared to the price at which they would be sold to an American customer.

I have seen several unofficial reports from my colleagues in the tech field indicating that more H100 units , and possibly some Blackwell chips, may be available at a slightly higher price than they were about two months ago .

It is true that some deny this, but the prevailing opinion is that more companies want to move to the latest generation, which is good for Nvidia.

The fact that users are moving away from H100 devices and wanting to acquire newer systems, such as Rubin or even GB300 systems, especially Microsoft, and I am sure that we will see more companies follow suit during the coming week, month and year, is actually a good thing for Nvidia, because it does not necessarily make profits from renting out old systems, although it benefits from them indirectly.

The ability of customers to lease these systems for longer years and generate greater profits outside the normal distribution of consumption is a positive thing for Nvidia, but this is a topic that will be brought up a lot during the conference call , and I tell you, Jensen Huang would do well to deliver a strong performance because the industry desperately needs him.

I posted a video this week on my Equity Empire channel where I talked about how last year , IREN could have issued a press release, and you could have bought that release. NVIDIA or AMD could have announced a new chip, and you could have bought the press release and bought the stock, and its price would have gone up.

So, this is definitely worth following, and it's great news for Nvidia, as Elon Musk and SpaceX have an exclusive agreement with them.

As for Nvidia, it will announce its earnings on the seventeenth of this month. So, you have a little over a week ahead of you, about 11 days from now, and in my opinion it will be interesting to see what Wall Street, traders, and those who bet on short-term ups, will do about it.

In my opinion, it has recorded a new low on the chart, something we haven't seen for a long time. I have retested the lows I recorded in July, and even broken through them completely.

You are now below all of Nvidia's moving averages, and they are all negative, something we haven't seen in a while. So, as I mentioned regarding Netflix, this is not the end of the world.

The moving averages turned negative, and Nvidia was able to recover quickly.

The earnings announcement in 11 days is certainly a contributing factor, but my God, that conference call will be far less important than the prevailing sentiment and attitudes around artificial intelligence, which have clearly changed over the past few weeks.