Nvidia rises 3% as Wall Street backs $500 billion AI financing push

Nvidia shares rose about 3% to roughly $223 in early Wednesday trading after six major investment firms signed memorandums of understanding to mobilize more than $500 billion of third-party capital for AI infrastructure. The framework would let Nvidia customers tap outside funding from Apollo Global Management, BlackRock, Blackstone, Brookfield Asset Management, Goldman Sachs and KKR, while each firm independently decides whether to back individual projects, reducing fears that the chipmaker would finance demand for its own hardware. Morningstar said Nvidia is not expected to contribute cash to the platform and may instead offer a residual-value support mechanism for up to 25% of a project, which could limit balance-sheet risk at a time when hyperscalers (large cloud computing groups) are borrowing heavily for data centers and AI capacity. The research firm kept its $280 fair value estimate and said Nvidia's long-term growth outlook remains intact, arguing that the company is using its central role in AI infrastructure to attract capital and broaden access to its chips.

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