Nvidia hits a record as its financing of AI customers draws scrutiny

Nvidia hit its first record since May, with its value nearing $6 trillion¹. Yahoo Finance reported a new all-time high and a market capitalisation of $5.7 trillion³. Investing.com put the all-time high at $237.87, driven by a buyback, an analyst upgrade and AI demand⁴.

Jensen Huang’s fortune topped $200 billion after the move, with Forbes estimating he is now worth more than $203 billion². Cantor Fitzgerald reiterated an Overweight rating on the stock with a $350 price target⁹, citing strong demand, market-share gains and hyperscaler IT spending, for an implied upside of about 53 percent⁸.

Why it matters to investors

The financing side of the story is drawing as much attention as the share price. Yahoo Finance reported that Nvidia has put $500 billion on the table in a way that challenges banking as it is currently practised⁵. Huang said the company may provide support of up to 25 percent of an opportunity, and that he approached only six firms⁵.

TradingView summarised the structure as a $500 billion GPU loan programme plus $10 billion committed to OpenAI, and noted that Michael Burry has bought 2027 puts⁸. Nvidia and Broadcom are offering billions in loans to boost AI chip sales⁶. Bloomberg reported that Intel soared after Nvidia made a $5 billion investment in it¹.

Ad-hoc-news put the question directly, reporting that Nvidia is underwriting the AI boom it sold and that Wall Street is starting to ask who holds the risk⁷. It noted that the Bank for International Settlements has flagged the risk of circular transactions in the AI sector, where chipmakers pour billions into startups⁷.

What to watch

Investing.com argued that the AI infrastructure supercycle thesis has been validated by every earnings report and every hyperscaler capital expenditure announcement⁴. That is the bull case stated in its strongest form, and it rests on end demand rather than on the financing structure^4,7.

The measurable tests from here are the drawdown on the $500 billion facility, the share of each deal Nvidia ends up supporting against the 25 percent ceiling Huang described, and whether the BIS warning about circular transactions shows up in the credit terms rather than only in commentary^5,7.

Cantor’s target and the record price come from the same week, and the gap between them is the implied upside its analysts described^8,9.