Nvidia stock (NASDAQ: NVDA) enters a pivotal week near $215 after five consecutive declines, with investors weighing a reported move to deepen its relationship with AI search startup Perplexity just days before quarterly earnings.
Shares closed Friday at $214.72, down almost 5% from Monday’s close, as higher bond yields and renewed doubts over the AI trade pressured semiconductor names.
The Perplexity talks add another strategic signal: Nvidia is still deploying capital across the AI ecosystem while shareholders want clearer evidence that those investments will reinforce chip demand.
Perplexity deal would extend Nvidia’s AI ecosystem
The Information reported on Sunday that Nvidia is discussing an investment in Perplexity as part of an equity round valuing the startup at more than $30 billion.
That would be more than 50% above the roughly $20 billion valuation attached to Perplexity’s previous financing.
Perplexity’s annualised revenue has climbed above $750 million from less than $250 million at the start of 2026, helped by its Perplexity Computer AI agent, according to The Information.
Nvidia is already an investor, while the companies have also been working together through Nvidia’s Nemotron Coalition.
The potential deal fits Nvidia’s strategy of investing in companies that use or expand demand for its computing platforms.
The Information said Nvidia had previously considered a technology-licensing and hiring arrangement with Perplexity before talks shifted towards a conventional equity investment.
Nvidia stock outlook hinges on Wednesday earnings
The Perplexity talks are strategically interesting, but Nvidia’s August 26 earnings are likely to matter far more for the stock.
Wall Street expects fiscal second-quarter revenue of about $92.1 billion and adjusted earnings of $2.09 a share.
That would mark another quarter of exceptional growth, but expectations are already demanding.
Nvidia stock has barely advanced since the previous earnings report despite continued profit growth. Options markets are pricing a move of roughly 5.3% around the results.
Investors will focus on Blackwell demand, the Vera Rubin ramp, China sales and whether rising component costs pressure gross margins.
They will also look for more detail on Nvidia’s financing commitments across AI infrastructure.
Wall Street remains bullish, but the bar is high
Analyst sentiment remains positive. Bank of America analyst Vivek Arya sees Nvidia’s valuation as attractive despite vendor-financing concerns and maintains a $350 price target.
His view is that the market may be assigning too much weight to financing risks relative to Nvidia’s free-cash-flow potential.
BMO Capital is similarly constructive. In research carried by TipRanks, the firm initiated Nvidia with an Outperform rating and a $340 target, arguing that demand remains strong and much of the company’s capacity is already committed for more than 12 months.
TipRanks puts the broader Wall Street consensus target near $302, implying roughly 40% upside from Friday’s close.
That leaves the Nvidia stock outlook bullish but highly dependent on execution.
A Perplexity investment would strengthen the company’s position across the AI stack, but Wednesday’s earnings still need to show that infrastructure spending is translating into durable revenue, margins and cash flow.
With the shares entering the report after a five-session slide, a strong outlook could reset momentum.
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