Nvidia Drops 5%, Loses Crown as Most Valuable Company to Apple on OpenAI Backstop Fears
NVDA sits 20% above its 52-week low of $164.07.
Summary
Nvidia shares fell about 5% Monday, pushing its market cap below Apple's intraday as investors reacted to reports the chip giant could provide a roughly $250 billion backstop for a massive OpenAI data-center project. The drop reflects concern that such a commitment, while underscoring Nvidia's central role in AI infrastructure, could strain its balance sheet or divert resources. This follows a series of blockbuster announcements, including record Q1 revenue of $81.6 billion and an $80 billion buyback, but the potential $250 billion exposure is a new and material risk. The stock's decline also comes ahead of key tech earnings this week from Microsoft and Meta, which could further sway sentiment on AI spending.
At the time of this announcement, NVDA was trading at $196.63 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.8T. 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 7 out of 10. Source: Dow Jones Newswires.