News about NVDA

Market presenters on Bloomberg's Opening Trade said US and Asian tech futures rebounded after last week's sharp sell-off, while European futures fell amid protests in France and Russia-Ukraine tensions. Treasuries acted as a haven, while riskier bonds issued by AI companies widened from the rest of the market. India performed well because it has little AI exposure, and investors will watch Meta's guidance on AI spending. French debt sold off, with long-end yields up about four basis points, and the euro came under pressure.

Third-quarter earnings from Netflix, Meta Platforms, IBM and Western Digital this week are expected to set the tone for tech stocks. Netflix is forecast to lift revenue 12% to $12.88 billion and EPS 40% to $0.82, while Meta's revenue is expected to rise 24% to $63.39 billion, with investors watching its Muse AI tools closely. Western Digital's results may indicate whether memory demand is durable. Bloomberg reported that Nscale faces investor resistance to the $30 billion valuation it seeks for its IPO, with a group of investors urging $16–19 billion, after Microsoft exited a UK data center deal over power-related delays. Product events from Nvidia, Cloudflare and Oracle are also on the calendar, following a week in which SOXX fell 11.8%.

U.S. chip stocks rebounded over the weekend after their worst week since March, as investors repositioned ahead of third-quarter earnings from Tesla, Netflix and Meta. Intel and AMD each rose about 2.6% in overnight trading, while Micron and SanDisk gained 1.8% and 2.6%, and the iShares Semiconductor ETF (SOXX) rose 2.4% after an 11.8% drop the previous week. In a Nikkei interview, Intel CEO Lip-Bu Tan said the company was “80% done” with its restructuring and pointed to AI chip packaging and ASICs as growth areas. Intel also unveiled its GPU D-series with up to 480GB of memory, which according to TechRadar surpasses the 288GB of Nvidia's Blackwell Ultra B300 for data center GPU memory capacity. Stocktwits sentiment was bullish on SOXX, bearish on INTC, neutral on AMD and bullish on MU and SNDK, while one trader warned of possible further downside before a bounce and advised caution with long positions until last week's high is broken.

BlackRock is teaming up with Nvidia and other major financiers to build AI infrastructure financing platforms targeting over US$500 billion. The consortium plans to treat high-end AI compute capacity as a distinct asset class for large institutional investors, with BlackRock's credit desks expected to play a central role in structuring the vehicles. The article notes that the move fits BlackRock's existing focus on private markets and higher-fee infrastructure, which saw US$68 billion of private markets fundraising over the 12 months to Q3 2026 and operating margins of 47.8% in the same quarter. It says the key checkpoint for investors is whether AI-linked infrastructure and private credit commitments show up in that fundraising line and help sustain margins.

Shares of neocloud operators CoreWeave (CRWV), Nebius (NBIS) and IREN edged up overnight after a week of selling driven by doubts over business models and higher financing costs. CoreWeave had fallen more than 20% in the early part of the week before gaining 6% on Thursday, supported by Nvidia CEO Jensen Huang. According to The Information, industry executives expect only seven to ten of hundreds of neoclouds to survive, with Nvidia supporting them through easier credit terms and $20 billion in leases. Bloomberg reported that Nscale faces opposition to its $30 billion IPO valuation, while CoreWeave's unsecured debt due in 2032 fell below 80 cents on the dollar, a level widely seen as a sign of financial strain.

AMD shares have sold off recently, even though the company has benefited from an AI chip shortage because Nvidia cannot meet all demand. The article argues that valuation is a bigger risk than the AI business, with AMD's P/E at 139 and forward P/E at 72, several times higher than Nvidia, Broadcom and Taiwan Semiconductor. If AMD's P/E fell to Nvidia's current level, the stock could lose close to 80% of its value. Still, the valuation is seen as more of a threat to the stock than to the company, since data center AI chips made up 58% of AMD's latest-quarter revenue versus almost 93% for Nvidia. The author reduced AMD holdings for diversification but kept a substantial long-term position.

CoreWeave's stock dropped after a chart shared by Chamath Palihapitiya showed its bonds due 2032 yielding 15%, and Reuters reported its April notes due 2031 topped 16%. Rising yields signal growing market concern about default risk and whether neoclouds can earn returns above their cost of capital. That is a problem for Nvidia, which invested $2 billion each in CoreWeave and Nebius and agreed to buy CoreWeave's unused capacity through 2032. CoreWeave says its $104 billion contracted backlog covers its debt, while Nvidia's plan to finance up to $500 billion in AI build-outs faces bank objections over GPU residual values. The article notes Nvidia trades at about 23 times forward earnings, a level that may already reflect this financial pressure.

A broad sell-off in tech stocks pushed Wall Street lower, with the S&P 500 down 1.1% and the Nasdaq down 2.1%, marking the market's worst week since late June. Chipmakers including Micron, AMD, Broadcom and Intel fell as investors questioned how long the AI spending boom could last, while Netflix dropped 2.9% after a management change. The 10-year Treasury yield eased to 5.09% from 5.10%, after touching its highest level since 2002 earlier this month, and traders put the odds of a Fed rate hike in December at 74.3%. Brent crude jumped 3.7% to $US109.86 a barrel amid the Iran war and Strait of Hormuz supply concerns. The ASX was set to open slightly lower.

Asia's AI trade is under pressure as a selloff in US tech stocks raises worries that higher financing costs could slow the data center spending that supports regional chipmakers and suppliers. Oil's surge to US$110 a barrel has added inflation concerns, while US chip shares had their longest rout since 2008. A Goldman Sachs basket of Asian AI hardware stocks fell 11 percent last week, with Samsung Electro-Mechanics down 23 percent and Unimicron off 14 percent. CoreWeave's shares dropped 25 percent in a week as its bonds signaled distress, and Gartner warned that more than US$3.5 trillion of AI infrastructure spending could be impaired by 2030. Still, there is little sign so far that orders have weakened.

Investment in data centers, put at $10.3 trillion, is now the largest financial bet in US history, surpassing the late 1800s railroad boom in both scale and economic impact. A Columbia Business School report estimates the buildout's economic effect at nearly 4% of GDP, compared with more than 2% for railroads, which cost about $173 billion in today's dollars. Texas, Virginia, Ohio and Georgia lead projected spending, and some states are rethinking tax breaks as revenues shrink and energy demand rises. Data center construction value has more than doubled to $85 billion a year while other construction fell 8%, and economist Paul Krugman warns this crowds out housing and jobs. The article also notes that AI profitability has yet to catch up with the spending.

Data centre projects in America's $10 trillion AI infrastructure boom are facing delays, cancellations, blocks and weaker investor confidence. RegLayer counted at least 47 large projects delayed, withdrawn or blocked in 2026, while Bernstein estimated only about 35% of the planned US pipeline is credible. More than 1,000 communities have tried to introduce temporary bans or restrictions on AI infrastructure in 2026, and rising borrowing costs threaten financing for neocloud firms. CoreWeave's stock lost almost 25% in a week, and several IPOs, including SoftBank's SB Energy and Nvidia-backed Firmus, were delayed or shelved. Construction delays could let customers cancel: Cipher agreed to cover the first $359 million of cost overruns on a Texas project tied to Anthropic, and Anthropic could cancel its $45 billion Nscale agreement if targets are missed.

Trillions in borrowed money have fueled the AI boom, but investors are growing uneasy about whether more can be raised and repaid. CoreWeave, which has accrued $72 billion in liabilities to run 51 data centers, saw its bond prices crash, with investors pricing a more than 60% chance it would fail to meet its obligations. Oracle bonds also sold off, though less steeply, and the cost of insuring SoftBank's debt against default climbed. Barclays says the spread on risky AI debt rose more than 50% over six months. CoreWeave's model of leasing space for 15 years or more and subleasing it to shorter-term customers such as Meta, Microsoft and OpenAI has drawn WeWork comparisons, which the company disputes.

Wall Street has spent recent years rewarding nearly every company tied to AI, including hyperscalers, chipmakers, memory providers, cloud firms and equipment makers. A Columbia University estimate puts cumulative AI infrastructure investment and spending at about $9 trillion over 2025–2032, and says the sector would need more than $3.5 trillion in annual revenue by 2032 just to break even. The article argues that, as with the late-1990s telecom fiber build-out and 19th-century railroads, the biggest winners may be the businesses that use the infrastructure rather than those that build it, since builders often face overcapacity and weak returns. It points to industrial companies using AI for tasks such as predictive maintenance and logistics as potential beneficiaries, and presents the Industrial Select Sector SPDR ETF (XLI) as a complementary holding with a small allocation.

A heavy earnings week begins with Meta Platforms, Tesla, Netflix and Texas Instruments set to report, alongside Wednesday's crude oil inventory data. Pressure on semiconductor stocks and doubts about AI spending remain the main focus for markets.

Technology stocks fell this week as financing concerns mounted, pulling the S&P 500 and Nasdaq into negative territory. CoreWeave (CRWV) and Nebius (NBIS) each closed the week down more than 25%, and Baird's Ted Mortonson placed Oracle (ORCL) near the bottom of tech on free cash flow, citing a higher cost of capital and scrutiny of circular finance. Nvidia CEO Jensen Huang voiced optimism about CoreWeave, in which Nvidia holds roughly a 10% stake. Patrick Moorhead (Moor Insights & Strategy) called the sell-off another scare, while Dan Ives (Wedbush Securities) pointed to CoreWeave's revenue backlog of roughly $104 billion at the end of the second quarter. UBS described the volatility as a recalibration of expectations rather than a fundamental break, urging investors to watch whether AI spending turns into sustainable earnings growth.

NVIDIA (NVDA) closed at $217.23 on October 15 and has returned 9.52% over six months, trailing the 15.4% return of the Insider Monkey Billionaire Index and 11.4% of the State Street SPDR S&P 500 ETF Trust. Over the past year the stock rose 16.48%, while chipmaker Taiwan Semiconductor gained 43.10% and memory supplier Micron gained 360.14%. The article argues the business itself is sound: revenue in the latest quarter rose 105.9% year over year, earnings grew even faster, and operating margin stands at 66.24%. It says NVIDIA was repriced earlier in the cycle than its suppliers, whose earnings the market still treats as temporary. Shares trade at 24.88 times next year's expected earnings, against 28.51 times last year's, because earnings have climbed faster than the share price.

Global hedge funds suffered steep losses last week as a sharp unwind of AI bets hit, with Asia-focused funds hardest hit. Goldman Sachs said global fundamental long-short funds, or stock pickers, lost money every day last week, losing 2.9% for the week to October 15, though they remain up 14.3% year to date. South Korea's semiconductor-heavy market bore the brunt, as the Kospi tumbled 8% on Thursday to a six-month low, while CoreWeave's bonds sold off, pushing yields above 15%. Analysts said the selloff reflected a crowded trade meeting hotter-than-expected US inflation data, which revived expectations of rate hikes, rather than a fundamental rejection of AI. Goldman also noted that Asia-focused stock pickers have erased more than half of their gains since their late-June peak.

Many AI-leading stocks are pulling back after three years of strong gains, as investors worry about rising data-center funding costs and weaker-than-expected future demand. The iShares Semiconductor ETF is down more than 20% from its June peak and is in bear territory, weighing on the Nasdaq-100 and S&P 500. The author highlights two non-semiconductor AI stocks: Datadog (DDOG), whose revenue growth accelerated to 36% in Q2 and whose 2026 revenue forecast was raised by $140 million to $4.46 billion, though its P/S of 24.3 is well above its three-year average of 17.7. Palo Alto Networks (PANW) reported next-generation security ARR of $9 billion, up 63%, and targets $20 billion by fiscal 2030.

Investor confidence in AI leaders weakened this week, with Nvidia losing over $350bn in market value and the Nasdaq 100 down 5.5%, making Meta's results after Wednesday's close a key test before Alphabet, Microsoft and Amazon report. Analysts expect Meta's third-quarter revenue above $63bn, but adjusted operating income of $18.8bn is seen lower than in the previous quarter and a year earlier, with margins a little under 30% as AI costs rise. In the eurozone, growth has beaten expectations despite high energy costs, but 3.8% inflation makes an October ECB rate rise more likely, while PMI readings are expected to ease slightly to 52.5. In the UK, annual inflation is forecast to rise to 3.4% in September from 3.1% in August, above the Bank of England's forecast and adding pressure for a November rate rise.

AI stocks had a brutal start to October: the Roundhill Neocloud ETF (NCLD) fell 31%, the iShares Semiconductor ETF (SOXX) dropped 13%, and the Defiance AI and Power Infrastructure ETF (AIPO) lost 14%. Rising borrowing costs, investor concern over neocloud leverage, and hot inflation readings that pushed bond yields near two-decade highs drove the sell-off. Baird's Ross Mayfield is overweighting healthcare, financials and energy as hedges, while still adding to hyperscalers and power infrastructure. Travis Prentice of Infomed Momentum favors agentic AI cybersecurity names like CrowdStrike, Okta and Palo Alto Networks, plus AI adopters such as MetLife and Visa. AllianceBernstein's James Russo is pivoting to quality stocks that don't rely on external borrowing, including larger hyperscalers, and chipmakers with durable competitive advantages.