After a week packed with earnings, AI stocks ended it lower. Nvidia shares fell 4.2% on Friday, and its market value dropped to $4.93 trillion. That put Apple back on top as the world's most valuable company.
Credit guarantees for customers
One factor in the drop was a report that Nvidia is in talks to provide credit guarantees for a new data center of one of its customers. At the same time, an Indian AI infrastructure company is seeking to raise up to $3 billion to fund an order of Nvidia chips. The reports reinforced concern that part of chip demand relies on financing that comes, directly or indirectly, from Nvidia itself.
A week of warnings
The drop caps a week in which investors made clear what worries them. Alphabet fell about 10% after revealing negative free cash flow and a forecast of more than $300 billion in spending in 2027. Amazon fell despite 39% cloud growth. Only Microsoft, which showed lower-than-expected spending, rose. Meanwhile, according to a report, OpenAI cut its fundraising target.
What it means
Nvidia still sells every chip it can make, and Samsung and SK Hynix reported record profits this week on demand for AI memory. But the market is starting to distinguish between real growth and growth funded by loans and mutual investments. Israel, home to one of Nvidia's largest R&D centers outside the US, has a direct interest in the answer.
