Nvidia (NVDA) Stock Bounces After Jensen Huang Quiets the Debt Alarm
TLDR
- Nvidia stock rose 0.9% in premarket trading to $219.32 on Wednesday, looking to recover from a 3% drop earlier this week.
- CEO Jensen Huang said Nvidia’s financing exposure may be limited to a residual-value support mechanism of up to 25% per opportunity.
- Nvidia’s credit default swaps had risen to their highest level this year over fears the company was guaranteeing debt for AI chip buyers.
- Nvidia partnered with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR to mobilize over $500 billion in AI infrastructure financing.
- Wall Street is also watching Nvidia’s emerging CPU business, with Huang projecting $20 billion in CPU revenue this year alone.
Nvidia stock climbed 0.9% to $219.32 in premarket trading Wednesday, looking to reverse a 3% slide earlier in the week.
The bounce came after CEO Jensen Huang moved to calm fears around the company’s exposure to AI-related debt financing.
Nvidia’s credit default swaps had risen to their highest level this year. The concern centered on Nvidia guaranteeing financing for companies buying its AI chips, including a reported $250 billion financing deal being negotiated with OpenAI.
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