Chip stocks slumped as the Philadelphia Semiconductor Index plunged nearly 7% on Thursday, with all 30 index stocks closing lower, and Nvidia fell about 4.5% as investors grew skeptical that AI spending will last for years. 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, with Nvidia working with investment banks to mobilize more than $500 billion. The author argues such loans resemble car loans more than mortgages, since computing hardware is typically depreciated over three or four years, while Huang says the chips can generate revenue for over a decade. Nvidia may also guarantee part of the chips’ future value, so the author will be watching credit markets closely.
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NVDAJensen HuangsemiconductorsAI investmentdata centers
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Related tickers and likely impact
NVDA
▲ Likely positiveNvidia
Relevance: medium
| 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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