TradingKey – On July 27, Eastern Time, Nvidia ( NVDA) fell more than 5%, marking its largest drop since February 2026. The stock price took a hit, breaking below multiple moving averages from the 5-day to the 120-day, hitting a low of $195.44.

Reportedly, Nvidia and South Korea’s SK Group announced an AI cooperation agreement worth over $500 billion last Friday evening. Meanwhile, it is in talks with OpenAI regarding a guarantee agreement of up to $250 billion to assist the latter in leasing a data center project developed by a SoftBank subsidiary in Ohio.

The market is concerned that this business model could distort Nvidia’s operational decisions and create adverse incentives. Once demand in the AI industry falls short of expectations,…