TLDR
- Alibaba raised $10.2 billion in a Hong Kong share sale to fund AI spending, sending its stock down more than 8%
- Nvidia is in talks to invest in AI search startup Perplexity, now valued at over $30 billion
- Nvidia shares fell 2.4% ahead of its closely watched Wednesday earnings report
- Canada announced retaliatory tariffs starting September 8 after U.S.-Canada trade talks collapsed
- Samsung dropped more than 8% despite announcing a shareholder return program worth up to $80 billion
Alibaba Slides After $10.2 Billion Share Sale
Alibaba announced plans to raise $10.2 billion through a Hong Kong share placement to fund its AI ambitions. The offering is the largest primary follow-on share sale ever completed by a Hong Kong-listed company.
The funds will go toward chips, computing infrastructure and model development. Shares fell more than 8% as investors reacted to the dilution risk.
The raise comes after Alibaba’s latest quarterly profit dropped 75%, driven by heavy AI spending. Investors now want to see returns on that investment.
Nvidia Eyes Investment in Perplexity
Nvidia is reportedly in talks to invest in AI search company Perplexity as part of a new funding round valuing the startup at more than $30 billion. Perplexity was valued at around $20 billion just one year ago.
The company’s annualized revenue has grown from under $250 million at the start of 2026 to more than $750 million. The investment would extend Nvidia’s reach further into the AI software ecosystem, beyond its core chip business.
Nvidia Falls Ahead of Crucial Earnings Report
Nvidia shares fell around 2.4% Monday as investors trimmed positions before Wednesday’s earnings report. The wider semiconductor sector saw steeper losses, with Marvell and Micron each dropping more than 6% and Sandisk falling more than 10%.
Investors will be watching data-center revenue, Blackwell chip demand, and management’s forward guidance. Because Nvidia is one of the largest companies in the S&P 500, its results could move the broader market.
U.S.-Canada Trade Tensions Escalate
U.S. and Canada trade talks broke down, with Canada set to introduce retaliatory tariffs on September 8. The tariffs will match U.S. duties dollar for dollar and target steel, appliances, agricultural equipment and other goods.
The two countries share deeply connected supply chains, especially in automotive and industrial manufacturing. A prolonged dispute could raise costs for companies operating on both sides of the border.
Samsung Tumbles Despite Record Shareholder Returns
Samsung shares dropped more than 8% after investors were disappointed by the details of its shareholder return plan. The company announced it would return between 90 trillion and 110 trillion won, roughly $65 billion to $80 billion, to shareholders.
Investors had expected a more aggressive share buyback program. The reaction came in contrast to rival SK Hynix, which recently announced a $28.6 billion buyback alongside a commitment to return more than half of future free cash flow.
Samsung remains a key player in AI-related memory demand, but Monday’s sell-off shows how high expectations have become.
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