NVIDIA CEO Warns of Years-Long AI Memory Shortages; $250B OpenAI Guarantee Weighed
NVDA sits 20% above its 52-week low of $164.07.
Summary
CEO Jensen Huang warns that advanced AI memory shortages could persist for years, threatening to constrain the explosive data-center growth that drove Q1 revenue to $81.6B. The supply warning is the most concrete signal yet that NVIDIA's breakneck pace may hit a physical bottleneck. Separately, the company is reportedly weighing a ~$250B financing guarantee to back OpenAI's Ohio data-center lease — a staggering commitment that raises circular-funding concerns. On the demand side, the EU signed a letter of intent for NVIDIA to supply chips for seven AI gigafactories backed by €10B in public funds, adding a major sovereign customer. Meanwhile, hedge fund Situational Awareness liquidated its public portfolio, including a large NVIDIA stake, after AI-stock losses, signaling institutional caution. These developments land just two months after NVIDIA's record Q1 and $80B buyback authorization, adding both long-term supply risk and near-term funding overhang to the thesis.
At the time of this announcement, NVDA was trading at $196.84 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.7T. The 52-week trading range was $164.07 to $236.54. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Wiseek News.