Nvidia share price slides nearly 5% on financing fears
The Nvidia share price fell nearly 5% on Monday, July 27, 2026, leading chip stocks lower as reports that Nvidia is in talks to backstop about $250 billion in OpenAI data-center funding revived circular-financing worries. Apple surpassed Nvidia as the world's most valuable public company.
Key Takeaways
- NVDA closed down about 4.99% at $196.51 on July 27, 2026, according to market data cited by Yahoo Finance.
- Peer chipmaker AMD fell more than 5%, while Micron dropped more than 2% and SK Hynix more than 7%.
- Reports of a potential Nvidia backstop for roughly $250 billion tied to OpenAI computing leases renewed circular-financing concerns.
- Bloomberg noted the cost of protecting Nvidia's debt against default for five years rose by the most on record Monday.
- Investors are watching upcoming earnings from Microsoft, Amazon, and Meta for fresh AI-spending signals.
Why did the Nvidia share price fall nearly 5%?
According to Yahoo Finance, Nvidia (NVDA) tumbled nearly 5% on Monday, weighing on the wider semiconductor sector. As a result of the pullback, Apple (AAPL) surpassed Nvidia as the world's most valuable public company.
The move followed reports that Nvidia is in talks to backstop $250 billion in funding for OpenAI to lease computing power related to a U.S. data center project. Bloomberg said the potential guarantee would be one of the largest of its kind for the chipmaker.
At the same time, investors have grown more nervous about the returns on AI infrastructure spending. Last week, Alphabet shares fell after the company raised its capital-spending outlook for AI buildouts.
What is circular financing and why does it matter?
Circular financing describes arrangements in which suppliers are also major investors in their customers. In this case, worries center on a chipmaker like Nvidia potentially helping fund an AI developer that buys its equipment.
Yahoo Finance reported that those circular-investment concerns add to broader questions about AI demand, valuations, and debt. Bloomberg also noted that the price of protecting Nvidia's debt against default for five years rose by the most on record on Monday, stoking fears of rising funding commitments.
Separately, Nvidia announced a strategic collaboration with SK Group, the parent of SK Hynix, on Friday for a $500 billion-plus initiative spanning AI factories and next-generation memory—another reminder of how tightly chipmakers and AI infrastructure plans are linked.
How did other chip stocks react to the sell-off?
AMD declined more than 5% on Monday. Memory makers also slipped, with Micron falling more than 2% and SK Hynix dropping more than 7%.
Pressure on the sector was compounded by reports that China may be gaining ground in the AI race. The Information said a Chinese state-backed company began mass-producing a key piece of chipmaking equipment, helping spark a sell-off in ASML shares.
For readers tracking market-moving tech alerts, BlasterPost's Streaming & TV Alerts hub covers related breakouts and follow-ups as they develop.
What should investors watch next for Nvidia?
Investors are awaiting earnings this week from Microsoft, Amazon, and Meta, all expected to discuss further increases in AI-related spending. Any hint of a slowdown could spell trouble for semiconductor makers and related equipment firms.
Those reports, along with further headlines on OpenAI funding and circular-deal structures, will be key near-term tests for sentiment around the Nvidia share price and chip peers.