NVIDIA shares drop 5% after reports of a $250 billion guarantee for OpenAI’s data-center expansion spark vendor financing concerns.
NVIDIA and AMD shares fell 5% and 8%, respectively, after reports that NVIDIA may guarantee up to $250 billion in financing for OpenAI’s data-center buildout. The move raised concerns about circular financing, where NVIDIA funds a customer that then purchases its GPUs for AI infrastructure.
The selloff extended to other AI-hardware stocks, with Dell down 4% and Oracle declining 20% over the past month. Despite the pullback, NVIDIA’s Q2 revenue guidance of $91 billion and AMD’s 57% YoY data-center growth suggest underlying strength in AI demand.
Shares of NVIDIA (NVDA) traded at $197, while AMD (AMD) fell to $479. The broader AI sector retreat reflects investor caution over the scale and optics of the reported financing deal.