Nvidia and chip stocks plunge as AI financing costs soar
Twenty major AI and chip stocks lost more than $1 trillion as rising interest rates slow capital spending on infrastructure.
Nvidia fell 1.84%, AMD dropped 1.5%, and Intel sank 2.8% in a broader tech rout. Dell plunged 6.8%, while Asian chipmakers fell even harder.
SK Hynix plunged more than 10%, Samsung dropped 8.73%, and other regional makers faced similar pressure. Investors fear higher borrowing costs will squeeze the massive capital spending needed to build AI infrastructure.
Nvidia CEO Jensen Huang told Bloomberg at an event in Stockholm, Sweden, that he didn't see a need for Nvidia to backstop CoreWeave and that their cost of capital is decreasing. Analysts note that while funding costs are rising, underlying demand for AI computing power remains strong.
- Over $1 trillion
- Market value lost
- More than 10%
- SK Hynix decline
- 8.73%
- Samsung decline
- Stockholm, Sweden
- Huang's location
Why it mattersHigher interest rates could slow the AI investment boom that has driven recent tech gains and investor portfolio returns.
AustraliaAustralian superannuation funds and investment portfolios hold significant positions in these stocks; a sustained selloff would affect retirement savings.
✓ Claims checked against the source and corrected before publish. checked 1 h ago
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