Nvidia is moving beyond chip manufacturing to finance AI cloud ventures, including through substantial guarantees and investments in companies such as OpenAI. The shift exposes the company to considerable financial risks if demand for AI computing power wanes.
Concerns have grown amid market downturns affecting Nvidia-backed cloud companies and rising credit default swap spreads for major tech firms, including Nvidia. Nvidia’s stock also experienced a slight decline.
Apple briefly surpassed Nvidia as the world’s most valuable company on October 24, 2026, highlighting competition and shifting investor sentiment in the tech sector. Despite these concerns, Nvidia CEO Jensen Huang remains confident in sustained demand for AI.