Key Insights
- Nvidia stock is in the spotlight after reaching a $500 billion deal with top players on Wall Street.
- It has partnered with companies like Blackstone, Goldman Sachs, and BlackRock.
- The deal will see these firms provide financing to Nvidia’s clients.
Nvidia stock price dropped by over 2% on Monday as the recent rally stalled. It dropped to $217, down modestly from last week’s high of $224.9.
This performance will be tested as investors await its earnings later this month. The company recently reached deals with top Wall Street companies to fund its AI space.
Nvidia Reached a $500 Billion Deal With Top Wall Street Companies
Nvidia has come under pressure in the past few months as investors worried about the circular financing approach.
This is the approach where the company made major investments in its clients. That includes companies like CoreWeave, Nebius, OpenAI, and IREN. The hope is that, by owning these firms, they will end up buying their chips.
Now, Nvidia has found a new $500 billion trick to keep the AI spending going. According to a press release, the company has partnered with some of the biggest companies on Wall Street. The names include BlackRock, Apollo, Goldman Sachs, KKR, Brookfield, and Blackstone in a $500 billion deal.
The partnership will see these companies commit $500 billion to funding their clients across hyperscalers, frontier AI labs, and enterprises. That would help to build out data centers. These clients will also use these funds to buy Nvidia’s hardware.
This deal will benefit the three sides. Nvidia will benefit from companies that will use the financing to buy its chips. The firms will also benefit from accessing capital without using balance sheets.
The Wall Street companies will provide financing. Nvidia’s GPUs back it. It hopes that it will become a new asset class just like commercial real estate.
Still, the biggest risk will transfer to these Wall Street companies since the GPUs are depreciating assets. In the future, the current Blackwell chips will be worth less if Nvidia launches a new version of GPUs.
Furthermore, the chips may depreciate faster if other competitors like AMD release more advanced chips.
Data Center Spending is Soaring
The new announcement comes at a time when AI data center companies are spending billions of dollars. Moreover, many of them will need more cash to keep the spending going.
For example, Bitcoin mining companies that are pivoting to the AI data center space will need over $50 billion in assets. Furthermore, Google recently raised $85 billion through a combination of debt and equity.
More companies like Amazon, Microsoft, and Alphabet are planning to spend over $700 billion in data centers this year. Intel, a company that counts Nvidia as its biggest shareholder, is raising $15 billion through stock issuance.
Looking ahead, the next important catalyst for the NVDA stock will be earnings from some of its portfolio companies. The names are CoreWeave, Nebius, and Lumentum. These are all companies that Nvidia has invested in in the past few months.
Nvidia, on the other hand, will publish its financial results, which will provide more color about its business. Estimates are that its revenue jumped by 96% in the second quarter to $91 billion.
Nvidia Stock Price Technical Analysis
The daily chart shows that the Nvidia stock price has bounced back in the past few days. It rose from the double-bottom level of $189.50, its lowest level in June and July this year.
The stock remains above this pattern’s neckline of $214. It also sits above the 50-day and 100-day moving averages, signaling that bulls remain in control.
The stock also sits above the Supertrend indicator. Therefore, the stock will likely remain in a consolidation phase. Then, it may resume the uptrend, potentially to the all-time high of $236. If this happens, the stock will likely jump to the psychological level of $300.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
