TLDR
- Nvidia (NVDA) closed at $229.28 on Friday, down 0.52% for a fourth straight daily loss.
- The Financial Times says Nvidia is in early talks to buy Reflection AI or raise its stake.
- Nvidia has already committed $800 million to Reflection, last valued at $25 billion pre-money.
- Nvidia-backed names like SoundHound, Arm and CoreWeave have been falling.
- A rising wedge on the chart puts $210 in view if $220 support breaks.
Nvidia (NVDA) stock closed Friday at $229.28, down 0.52%. It was the chipmakerās fourth straight daily loss.
The stock now sits about 6% below its record high of $243. Investors are still cautious about the AI trade.
The Financial Times reported Saturday that Nvidia is in early talks to buy Reflection AI. It could also choose to add to its existing investment instead.
An agreement could come within weeks, the report said. The talks are preliminary and could collapse.
Reuters could not verify the report. Neither company has responded to requests for comment.
The deal could take a few forms. Nvidia could buy the startup outright, put in more money, or hire its staff and license its technology.
That last option is called an acqui-hire, and it can skip the long regulatory review of a full takeover. Nvidia used it with Groq, and Groqās employees sued last week, saying they were undercut.
Nvidia has already committed $800 million to Reflection, according to the FT. Reflection was last valued at $25 billion pre-money, so a buyout would likely cost more.
Reflectionās pitch and a shaky portfolio
Reflection was founded in 2024 by former Google DeepMind researchers Misha Laskin and Ioannis Antonoglou. It builds tools that automate software development.
On Monday it launched Beam, its first open-weight model. Beam targets coding and agent work, and it aims to take on cheaper Chinese rivals like DeepSeek and Kimi.
The timing is awkward, since several Nvidia-backed names are sliding. SoundHound AI hit its lowest level since 2014, and Arm is down more than 46% from its peak.
Marvell has dropped to $275 from a record $329. CoreWeave, IREN and Nebius have also fallen, and Australian firm Firmus postponed its IPO after investors balked at its valuation.
OpenAI is running behind plans too, with annualized revenue of about $50 billion, or $20 billion below analyst forecasts. Lumentum is a bright spot after hitting a record $1,140 on word that its products are sold out through 2029.
Chart: rising wedge in focus
On the daily chart, Nvidia is trading inside a rising wedge, a pattern that often ends with a bearish break. The stock still holds above its 50-day and 100-day moving averages. Support sits near $220, with resistance between $233 and $237.
The RSI has cooled to about 53 from near 68 earlier this month. That shows momentum fading without turning oversold. The MACD reads 3.95 against a signal line of 3.82, and the histogram has narrowed to 0.13, so bullish momentum is close to flipping.
What to watch: a break below $220 could open the door to $210, the September 14 low. Holding above it keeps the uptrend structure intact, and a move over $243 would point to more gains.
Earnings from big Nvidia customers Microsoft, Alphabet, Meta Platforms and Amazon are due in the coming weeks. Nvidia traded at $229.33 in after-hours action on Friday.
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