Top News

• Nvidia’s AI chips and hardware are now “investable assets.”
• NVDA stock dropped nearly 3% on Monday, but rebounded in the overnight session.
• Stocktwits sentiment for NVDA remained ‘bullish.’

Nvidia CEO Jensen Huang positioned the company’s AI chips and hardware as “investable assets” while seeking to allay concerns over circular financing and excess cloud capacity following a stock drop after the company announced key financing partnerships with Wall Street giants.

“We have moved from an era in which companies bought chips and built data centers project by project to one in which AI factories can be financed as productive infrastructure — with repeatable platforms, long-term institutional capital and a diverse customer base that uses compute to create revenue,” Nvidia CEO Jensen Huang said in a blog post on X on Monday.

In an interview with CNBC, Huang said, “This is really the first time that technology chips have become an investable asset class.” He added that Nvidia chips “are revenue-generating assets now. They’re productive, they’re long-lived, they’re fungible, they’re flexible.”

Huang argued that Nvidia’s widely deployed hardware can be redeployed across customers, allowing lenders to view compute infrastructure as a durable, revenue-generating asset with a longer useful life.

On Monday, Nvidia announced partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to establish independent financing platforms designed to mobilize over $500 billion of third-party capital to support the buildout of AI infrastructure over time.

NVDA stock dropped nearly 3% in Monday’s regular session, when the deal was announced. Shares rose 0.7% overnight.

Nvidia’s Jensen Huang Addresses Deal Concerns 

Huang sought to address concerns that the initiative could amount to circular financing, saying the capital would come from independent, long-term institutional investors. 

The investors would independently assess each project’s customer demand, utilization, cash flow and residual value, while Nvidia would provide the computing platform, he said in the blog.

Nvidia may provide “residual-value” support of up to 25% on some projects, Huang said, but stressed that the mechanism would be assessed on a case-by-case basis and would complement rather than replace independent underwriting. 

“That support is limited, residual-value based and designed to complement — not replace — independent underwriting. This is substantially lower than other compute-financing arrangements,” he said.

Nvidia has increasingly put capital behind customers and infrastructure providers that then spend heavily on Nvidia hardware, including OpenAI and CoreWeave. 

Huang also pushed back on concerns that the market could struggle to absorb the planned capacity, arguing that the focus should be on building “productive AI factories” rather than simply more data centers. 

The return on the infrastructure investment, he said, would ultimately come from AI’s growing usefulness across industries, including software development, drug discovery, product design and automation. 

Retail View On NVDA

On Stocktwits, retail sentiment toward NVDA has remained broadly steady over the past week and was ‘bullish’ as of late Monday, with several traders analyzing the latest news.

“NVDA news today on Blackrock deal, NVDA is not spending any money, more of assisting other companies with loans through bank giants to commit to their GPU purchases,” a trader said. 

Another wrote: “$NVDA if banks and PE are willing to back Jensen with $500 billion in different forms of funding to help with AI build out, that’s extremely bullish and confirmation we are still in the early innings.”

Still, some pockets of the market continue to be frustrated over the stock’s muted move. NVDA stock gained 16.8% year to date, sharply lower than the 74.5% rise in the chip sector benchmark iShares Semiconductor ETF (SOXX).

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