Nvidia slides as circular-financing fears ripple through chips

NVIDIA shares fell nearly 5% and dragged the chip sector lower after reports Nvidia could back a roughly $250 billion OpenAI computing-funding plan, renewing concerns about circular financing where suppliers are large investors in customers. Nvidia also disclosed a strategic SK Group collaboration on a $500 billion+ AI factories and memory initiative, amid worries about AI demand and valuations as inflationary/regulatory factors and China’s chipmaking progress weigh on the sector. Apple reportedly surpassed Nvidia as the world’s most valuable company, while peers like AMD, Micron, and SK Hynix declined ahead of earnings from Microsoft, Amazon, and Meta.