The Philadelphia Semiconductor Index plunged nearly 7% on Thursday, with all 30 of its stocks closing lower, and Nvidia fell about 4.5%. CEO Jensen Huang said demand from neoclouds, companies that rent out Nvidia-powered computing capacity, is off the charts, but the money needed to build that capacity far exceeds what is available. His proposed fix is to make Nvidia's chips a “financeable asset” that lenders accept as collateral for AI infrastructure loans, and Nvidia has worked with investment banks for months to mobilize more than $500 billion in financing. Huang argues the chips hold their value, citing rising rental prices for older H100 chips between Oct. 2025 and March 2026, while the author notes computing hardware is typically depreciated over 3 to 4 years and that Nvidia may guarantee part of the chips' future value. The author warns that reliance on borrowed money exposes Nvidia to a credit crunch, and points to soaring bond yields at heavily indebted neoclouds as a sign that appetite for lending before real cash flow is declining.
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NVDA
▲ Likely positiveNvidia
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/23/2026 | 211.00 |
| Change that session | -0.57% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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