Highlights of the week: Nvidia and Figma disappointment, Intel risks, Apple expectations

Nvidia shares lost 3.5% after a weak report on key AI chips and uncertainty over exports to China. Intel warned that having a new shareholder - the US government - could complicate the company's overseas business. Figma's quotes collapsed after neutral Wall Street estimates, analysts consider the company's shares overvalued. Core inflation in the U.S. in July rose at the fastest pace in five months. About the main events from August 25 to 29 - in our review.

Nvidia shares fell 3.5% in the aftermarket after the release of its quarterly report on Wednesday, August 27 and declined for two more consecutive days as the chipmaker beat revenue and profit forecasts, but the division that makes AI chips for data centers reported revenue below expectations at $41.1 billion versus the consensus forecast of $41.29 billion. This is the second consecutive quarter that Nvidia's key division, which generates 89% of its total revenue, has underperformed expectations. This is largely due to a freeze in shipments of H20 chips to China.

Nvidia's total revenue rose 56% to a record $46.74 billion, with profits also beating analysts' expectations.

According to Nvidia's third-quarter forecast, its sales could reach $54 billion, plus or minus 2%. This represents a risk that the figure will be below market consensus. At the same time, Nvidia noted "extraordinary demand" for the new generation of Blackwell chips and confirmed plans to mass-produce Rubin processors next year.

The issue of exports to China remains a major uncertainty: Nvidia estimates it could generate between $2 billion and $5 billion in the third quarter from H20 sales to Chinese customers.

What else is there to read about it?

- What was said on Wall Street after the release of Nvidia's report - in Oninvest's piece "Nvidia's revenue from its key AI business fell short of forecasts. Shares fell."

The benchmark Personal Consumption Expenditures (PCE) index, which excludes volatile food and energy prices, jumped 2.9% in July on a year-over-year basis, the U.S. Bureau of Economic Analysis reported Friday, August 29, the fastest rate of increase in the index since February and the third straight month of consecutive index growth.

The U.S. Federal Reserve considers the core PCE index to be a key indicator in making rate decisions. Relative to June, the core PCE grew by 0.3%. Both indicators are in line with economists' forecasts.

Last week, Fed Chairman Jerome Powell gave hope for a rate cut in September, but he should have already known the PCE estimates before he spoke, MarketWatch noted.

The Consumer Price Index (CPI) rose at a 2.7% annualized rate in July - less than analysts expected.

Intel reported "risk factors" to its business in connection with the transfer of a 9.9% stake to the U.S. government in a report filed with the SEC on Aug. 22. Government involvement could limit foreign sales, which account for 76% of revenue, and affect access to future grants, the document said. In addition, the emergence of such a large shareholder reduces the voting influence of other shareholders and could dilute shareholder interests and increase the government's influence on corporate decisions.

Washington's investment brought the total amount of state support for Intel to $11.1 billion. The company's obligations under the CHIPS and Science Act, under which the government supports microprocessor manufacturers, will be considered fulfilled. Under another program - Secure Enclave - the company will continue to supply semiconductors for the needs of the Ministry of Defense. The situation raises questions about whether other subsidies will not be converted into equity stakes.

Trump himself, on the other hand, characterized the agreement as "a good deal for the United States." But the context of the deal has already drawn criticism: the allocation of a stake in Intel "was yet another example of US President Donald Trump's unprecedented interference in the affairs of American business," Reuters wrote. The same opinion is held by Bloomberg.

On Thursday, August 28, Intel CFO David Zinser announced that the company received $5.7 billion from the U.S. government as part of a deal to transfer a 10% stake in the company, CNBC wrote. A White House spokeswoman specified that the deal is still "in the process of being negotiated" and has not been finalized.

What else is there to read about the Intel deal?

- Intel is virtually the only American company capable of producing modern computer chips, and the government does not want to lose this production, says Oninvest columnist Roman Kutuzov. Why U.S. officials bought a stake in Intel, he argued in his column "Intel's Share Went to the White House: What Are U.S. Officials Afraid of Losing?".

Apple has announced the date of its annual presentation - it will be held on September 9 in Cupertino. The company is expected to unveil the new iPhone 17, a slimmed-down version of the smartphone and possibly an updated Apple Watch. The slogan for the event is "awe dropping" ("stunning," "something that causes a daze"). But if the company fails to impress investors, it will likely reflect poorly on the stock, Barron's said.

The company's securities have often fallen after its presentations, but this time analysts believe that a strong demonstration of Apple Intelligence or new integrations could support quotes. Since the beginning of the year, Apple shares are down 7%, but have started to show signs of recovery and are on track for their best month this year, Bloomberg noted.

The main risk for Apple remains lagging behind in the field of AI: users are waiting for the updated chatbot Siri, and the company is looking for an opportunity to catch up with competitors, discussing a partnership with Google, the purchase of French AI startup Mistral and the company Perplexity AI. According to analysts, successful moves in this area could give Apple's stock a boost.

What else is there to read about it?

- What new products will present Apple on September 9, wrote in the material "Ultra-thin Air, folding smartphone and plans for the iPhone 20: what to expect from Apple?".

Shares of Figma fell 8.9% on Monday as several top Wall Street banks began tracking the company's stock, with most assigning neutral ratings. Among them are Morgan Stanley, Goldman Sachs, J.P. Morgan, RBC Capital Markets, Wells Fargo, Wolfe Research and William Blair. Analysts do not doubt the company's potential in AI, but consider Figma's stock overvalued and draw attention to strong competition.

At the same time, analysts' forecasts diverged: according to Morgan Stanley and Wells Fargo, Figma shares may add up to 3.5-6%, while Goldman Sachs, J.P. Morgan and RBC allow the quotations to fall by 3-38%. Wolfe Research limited itself to a neutral recommendation without a target, only William Blair recommended to "buy" the company's securities. Analysts emphasize that current capitalization already takes into account long-term expectations, which restrains short-term growth potential.

Figma remains one of the market leaders in collaborative design software used by Netflix, Airbnb and Duolingo, but competition and technological challenges, including AI, could affect its position. Figma's IPO on the NYSE took place in July, with shares soaring 250% on the first day of trading. The company now has a market capitalization of $34.7 billion; Adobe tried to buy Figma for $20 billion in 2023.

What else is there to read?

- Which stock to choose for an investor: Figma or Adobe - independent analyst Mikhail Zavaraev compared the performance of both companies in the material "Mature business vs. a member of the elite club: what the comparison of Figma and Adobe shows".

Elon Musk's AI startup xAI has filed a lawsuit against Apple and OpenAI: it accuses the companies of anti-competitive actions, CNBC reported. The lawsuit alleges that Apple is undercutting competing chatbots, including xAI's Grok, in App Store searches and giving ChatGPT an advantage.

"This complaint is consistent with Musk's ongoing pattern of behavior to harass the company," an OpenAI spokesperson said. OpenAI CEO Sam Altman recalled the manipulation of the X owner for his own benefit. Apple said the App Store operates as a "fair and impartial platform".

The Musk lawsuit was another round of conflict between Musk and Altman. Elon Musk co-founded OpenAI, but left the company in 2018, due to disagreements with Sam Altman about the future of the project. Musk had previously sued OpenAI before, accusing it of abandoning its original mission. Meanwhile, Apple's partnership with OpenAI has led to the integration of ChatGPT and GPT-5 into the Apple Intelligence ecosystem, adding to the competitive tension in the AI market.

This article was AI-translated and verified by a human editor