In the latest trading session, Nvidia shares fell by 2.89%, underperforming the S&P 500’s 0.8% gain and the Nasdaq’s 1.1% advance. This marked the third decline in four sessions, driven in part by profit‐taking following a six‐week rally that propelled the stock up over 30%. Despite record quarterly revenue growth of 46% year‐over‐year in its last report, investors appear cautious ahead of the company’s Q4 earnings and guidance call.

According to a Wall Street Journal report, Nvidia executives have expressed reservations about the proposed $100 billion investment in OpenAI. Concerns center on OpenAI’s competitive positioning against Google and Anthropic, as well as potential dilution of Nvidia’s balance sheet discipline. Sources say the investment discussion has been scaled back internally, with final commitments now expected to be in the $50 billion range rather than the originally mooted figure.

Analysts have highlighted two primary risk factors heading into Nvidia’s upcoming Q4 earnings: margin compression and the treatment of China GPU revenue in Q1 FY27 guidance. Gross margins, which expanded to 71.2% in the most recently reported quarter, may face headwinds from rising component costs and increased R&D spending. Additionally, excluding China‐related sales from forward guidance could trigger a post‐earnings sell‐off, as Greater China accounted for roughly 25% of Nvidia’s total GPU revenue last quarter.

During a recent public appearance, CEO Jensen Huang emphasized Nvidia’s commitment to supporting “every developer” on its AI platform. His comments came after a U.S. lawmaker accused Nvidia of providing technical assistance to China’s DeepSeek, which Nvidia has firmly denied. Huang reiterated that the company’s software toolkits and support services are available globally, underscoring the strategic importance of broad developer engagement to sustain Nvidia’s software‐driven data center ecosystem.