Nvidia stock was falling after it received a rare Sell rating. Investors will be hoping for a lift from Meta and Microsoft earnings regarding investment in AI data centers.

This optimism is likely to taper off if macro uncertainty continues, but it is still a solid buy signal. The increase in CapEx is something that will definitely help Nvidia continue its streak of beating earnings estimates with stellar figures.

Despite being one of the winners of the ongoing AI boom, Nvidia’s NVDA “prospects are well understood and largely priced into the stock,” Seaport analyst Jay Goldberg said in the note. The chipmaker’s stock is down 21% so far this year,