Key Insights
- Despite announcing a massive $150 billion share buyback, Nvidia stock has struggled for momentum.
- A leaked prospectus for Anthropic highlights rapidly escalating costs.
- Technical charts indicate the formation of a shooting star candle and a diamond reversal pattern.
Recent days have seen Nvidia stock trade sideways, with attempts to reach record highs encountering significant resistance. This sluggishness persisted even alongside the unveiling of a $150 billion share buyback program. Underlying this hesitation is growing anxiety that leading artificial intelligence enterprises are rapidly depleting their cash reserves, reviving concerns of an AI market bubble.
Nvidia Stock Wavers Despite Massive Buyback Plan
NVDA shares have stayed under pressure despite the introduction of a substantial share repurchase initiative. Management announced plans to dedicate an extra $150 billion toward buying back shares, following a previous $80 billion buyback authorization disclosed during the first-quarter earnings report.
Typically, share buybacks are viewed as positive catalysts because they decrease the count of outstanding shares. Past figures indicate Nvidia’s outstanding shares have indeed declined to 24.15 billion from more than 25 billion back in 2022.
This expansion in buybacks is fueled by the financial windfall generated by the ongoing artificial intelligence boom. Leadership also considers the equity heavily undervalued, pointing to a forward price-to-earnings ratio of 20—considerably lower than historical averages. Furthermore, the company’s Rule-of-40 multiple remains exceptionally strong, driven by profit margins of 55% and revenue growth exceeding 100%.
Anthropic IPO Prospectus Shows Massive Cash Burn
A leak of Anthropic’s initial public offering prospectus has contributed to the sideways movement in Nvidia stock by exposing ongoing cash depletion. The documents reveal that Anthropic’s revenue surged twelvefold in 2025 to approach $4.6 billion, yet the company simultaneously posted an operating loss of $8 billion alongside a net loss of $42 billion.
Anthropic’s revenue expansion has persisted into the current year, supported by advanced models that establish it as a formidable rival to OpenAI. Even so, the enterprise has taken on massive financial commitments. It secured a $45 billion agreement with Nvidia-backed Nscale, alongside a $200 billion deal with Google, a $45 billion commitment with SpaceX, a $35 billion arrangement with Lambda, and an $11.6 billion pact with Akamai. These financial obligations clarify the persistence of its heavy cash burn.
This financial profile echoes that of OpenAI, another leading firm supported by Nvidia. Recent evaluations indicate that OpenAI faces cumulative cash burn projections exceeding $280 billion.
AI Bubble Risks Remain
These developments unfold amid persistent investor anxiety regarding an artificial intelligence bubble. In a recent video commentary, prominent hedge fund manager and analyst Patrick Boyle argued that the market is presently inside an AI bubble.
Boyle pointed to escalating cash consumption by entities such as OpenAI and Anthropic, the interconnected and circular dependencies within the sector, and the towering valuations attached to these firms. Nvidia sits directly at the center of this circular investment ecosystem, frequently funding its own clientele.
Additional industry veterans, including Michael Burry and Ray Dalio, have similarly cautioned that an artificial intelligence bubble exists and could rupture in the near future. Any such correction would directly impact Nvidia, given its central position within the broader AI landscape.
Nvidia Share Price Forecast: Technical Analysis
The daily price chart indicates that NVDA equity has consolidated throughout the month. As upward momentum cools, the price hovers near its peak all-time level of $236.
Nvidia continues to trade above its 50-day Exponential Moving Average (EMA). However, the chart shows a diamond reversal formation—a traditional bearish signal—alongside a shooting star candlestick characterized by an extended upper shadow and a compact body.
Consequently, a downward retracement is plausible, with a potential target testing support near the $220 mark. Conversely, a decisive break above the all-time high of $236 would invalidate this outlook and point toward continued upward movement.
Frequently Asked Questions
Why is Nvidia stock wavering despite the $150 billion buyback?
While buybacks generally signal confidence and reduce outstanding shares, Nvidia’s stock has faced resistance due to broader market fears. Specifically, leaked financial data from major AI players like Anthropic reveals massive cash burn, triggering fresh concerns about a potential AI bubble.
How much did Anthropic lose according to its leaked IPO prospectus?
The leaked prospectus showed that although Anthropic’s revenue grew twelvefold in 2025 to nearly $4.6 billion, the company suffered an operating loss of $8 billion and a net loss of $42 billion.
What are the technical indicators saying about Nvidia’s stock?
The daily chart shows Nvidia trading near its all-time high of $236, but it has formed a bearish diamond reversal pattern and a shooting star candle. Analysts suggest this could lead to a pullback toward the $220 support level unless it breaks past its record high.
What is the “circular investing cycle” mentioned in the article?
The circular investing cycle refers to the interconnected nature of the AI industry, where major hardware providers like Nvidia invest heavily in their own corporate customers and partners, which has raised valuation and bubble concerns among analysts.