Nvidia stock closed at $229.28 on Friday, down 0.52% and about 6% below its all-time high of $243, marking a fourth consecutive daily decline. The pullback came as the Financial Times reported that Nvidia is in early talks to acquire Reflection AI or increase its existing stake in the startup. People familiar with the matter said a deal could come within weeks, though the discussions remain preliminary and may still fall apart.
Reflection AI was founded in 2024 by former Google DeepMind researchers Misha Laskin and Ioannis Antonoglou and builds tools that automate software development. It launched its first open-weight model, Beam, on Monday, targeting coding and agent tasks. The company was raising money at a $25 billion pre-money valuation in April, and Nvidia has already committed $800 million to it. A full buyout would likely value Reflection well above that level. Possible structures include a full acquisition, additional funding, or an acqui-hire, where Nvidia would bring on staff and license the technology. That approach has drawn scrutiny before: Nvidia used it with Groq, and Groq employees sued last week saying they were undercut.
The news lands as several Nvidia-backed stocks struggle. SoundHound AI has fallen to its lowest level since 2014, Marvell has dropped to $275 from a record $329, and Arm Holdings is down more than 46% from its peak. Neocloud names such as IREN, CoreWeave and Nebius have also declined, while Australian firm Firmus postponed its IPO last week. OpenAI, another major Nvidia investment, is reportedly tracking below expectations, with annualized revenue near $50 billion compared with analyst expectations about $20 billion higher. On the positive side, Lumentum hit a record $1,140 after management said its products are sold out through 2029.
Technical indicators show a rising wedge pattern on the Nvidia chart, with support near $220 and resistance between $233 and $237. A break below the lower wedge line could open the door to $210, the September 14 low, while a move above $243 would point to fresh highs. Upcoming earnings from major Nvidia customers, including Microsoft, Alphabet, Meta Platforms and Amazon, are seen as the next key catalysts.
