Why Did Nvidia Stock Fall on Monday Despite a $500 Billion Wall Street AI Deal?

Nvidia (NVDA) sells the chips powering the artificial intelligence (AI) boom. Now it is helping raise the money that buys them. A reported $500 billion financing package with six Wall Street giants would seal that new role.

The Financial Times revealed the talks on Monday, and Reuters confirmed them. Yet NVDA fell more than 2% to about $218. That reaction is the real story.

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Inside the $500 Billion AI Deal Nvidia Is Assembling

The lineup is heavyweight. Apollo Global Management, Blackstone, BlackRock’s Global Infrastructure Partners, Brookfield Asset Management, Goldman Sachs, and KKR are all in, Reuters reported. The money targets data centers, power plants, and chips.

The deal could be announced within days. The structure is still secret. So is Nvidia’s exact stake in it. Reportedly, every firm involved either declined to comment or stayed silent.

The scale matches the need. Big Tech will spend more than $730 billion on AI this year, per Reuters. Power supply is the choke point, as new Texas disclosure rules for data centers show.

Why NVDA Stock Fell on a Bullish Headline

The problem is not the number. It is the direction the money flows.

Consider Nvidia’s recent moves. It raised $25 billion in a June bond sale, its first since 2021. It also plans to invest up to $3 billion in Lancium, The Information reported.

Lancium is the power developer behind Texas’ Stargate AI campus. Last week, Nvidia backed Firmus’ $2 billion raise at a $10.5 billion valuation.

Each of those dollars can come back as chip orders. Critics call this circular financing. A supplier funds its customers, and the customers buy its products. When that loop tightens, real demand gets harder to measure.

Markets have seen this movie before. Telecom giants Lucent and Nortel lent billions to their own customers in the late 1990s. The orders looked spectacular until the dot-com crash. Then the loans soured, and both stocks never recovered.

That history explains Monday’s flinch. NVDA slid to about $218, accentuating the wider AI bubble debate.

The Bull Case Analysts Refuse to Drop

Wall Street has not blinked. TipRanks data shows 36 of 37 analysts rate NVDA a Buy. One says Hold. None say Sell. Targets run from $250 to $500, with the average at $308.69. By the platform’s math, that implies 49.24% upside.

Bulls also point to demand with no financial engineering behind it. SpaceX just committed its AI systems exclusively to Nvidia’s Vera Rubin architecture.

The referee arrives on August 26, when Nvidia reports quarterly earnings. Consensus calls for about $91.8 billion in revenue and $2.08 in earnings per share. Both would nearly double year-ago levels. Expect hard questions about how much of that demand Nvidia’s own money helped create.

The $500 billion package is a test. Either the AI buildout can pay for itself, or it leans on Nvidia’s balance sheet. The deal’s fine print should tell us which.

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