Markets opened the week with five dominant storylines: 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 more than $30 billion; Nvidia shares fell 2.4% ahead of its closely watched Wednesday earnings report; Canada announced retaliatory tariffs starting September 8 after trade talks with the United States collapsed; and Samsung dropped more than 8% despite unveiling a shareholder return program worth up to $80 billion. Together, the moves underscored how investors are balancing heavy AI spending, valuation pressure, and policy risk across technology and manufacturing stocks.

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, with proceeds earmarked for 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, and investors now want to see returns on that investment. The scale of the deal also highlights how capital-intensive the AI buildout has become for large internet companies.

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, up from around $20 billion just one year ago. Perplexity's annualized revenue has grown from under $250 million at the start of 2026 to more than $750 million.

An investment would extend Nvidia's reach further into the AI software ecosystem, beyond its core chip business, at a time when the company is already central to infrastructure spending across the sector.

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, and its outlook is likely to be read as a test of whether AI demand remains strong enough to support the sector's recent run.

U.S.-Canada Trade Tensions Escalate

Trade talks between the United States and Canada broke down, and Canada is set to introduce retaliatory tariffs on September 8. The measures 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, and a prolonged dispute could raise costs for companies operating on both sides of the border. That makes the tariff escalation relevant not just for exporters, but also for manufacturers that rely on cross-border parts and finished products.

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 said it would return between 90 trillion and 110 trillion won — roughly $65 billion to $80 billion — to shareholders, less than the more aggressive share buyback program investors had expected.

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 its 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 as investors compare capital-return plans across the semiconductor industry.