Nvidia Shares Hover Near $208 as Reports Cite Potential $250B OpenAI Backstop

Nvidia shares traded around $208 as the market weighed reports that the chipmaker is discussing a financing guarantee tied to OpenAI's planned AI data-centre buildout in Ohio. According to the reports, Nvidia is in talks to provide a financial backstop of up to $250 billion to support OpenAI's long-term lease for a planned 10-gigawatt AI data-centre campus being developed by SB Energy in southern Ohio. Discussions are said to be ongoing, and no final agreement has been announced. The potential structure has revived debate over so-called circular financing, a term some analysts use when a supplier supports customer financing that may later translate into product purchases. Critics argue it can be viewed as a mechanism to reinforce future revenue, while supporters describe it as a common approach for accelerating large-scale infrastructure projects. Nvidia has not characterized the reported OpenAI proposal as circular financing. The reports also come as investors track Nvidia's growing investment footprint across AI-related companies. Nvidia previously agreed to participate in OpenAI's latest funding round, reportedly committing about $30 billion at a valuation above $700 billion. It recently invested $2 billion in IREN, a Bitcoin mining company shifting toward AI data centers, a sizable check for a company valued at more than $13 billion. Nvidia also invested $2 billion in Nebius and has become one of its largest shareholders. The company owns roughly 11% of CoreWeave, a major player in the "neocloud" space, and has committed up to $10 billion to Anthropic, the parent company of Claude. Most recently, it invested $1 billion in South Korea's Naver. Other firms have pursued similar strategies. Advanced Micro Devices (AMD) has entered a large deal with OpenAI, under which OpenAI may choose to take a 10% stake in AMD. AMD also recently announced a $5 billion investment in Anthropic. Investors are also digesting Nvidia's recent announcement with SK Hynix. The companies said they plan a $500 billion partnership spanning AI factories and next-generation memory. Attention now turns to upcoming big-tech earnings for signals on capital spending. Meta Platforms and Microsoft are scheduled to report on Wednesday, followed by Amazon on Thursday. Apple also reports Thursday, though it is not viewed as a major buyer of Nvidia chips. In the last quarter, the group indicated plans for $725 billion in capex this year. Any upward revisions could support Nvidia as a key supplier, though markets are also watching for signs one or more companies may rein in spending amid rising investor scrutiny of capital expenditures. On the technical side, the daily chart shows Nvidia moving sideways in recent sessions, consolidating near the 50-day and 25-day exponential moving averages (EMA). The price action appears to be forming a rising wedge, a pattern often viewed as bearish in technical analysis. The Relative Strength Index (RSI) has also formed a symmetrical triangle, with lines nearing convergence. Based on these signals, some traders see risk of a pullback in coming days, potentially toward a key support level around $190. This content is for informational purposes only and does not constitute financial or investment advice. Stock prices, technical indicators, and corporate financing developments do not guarantee future performance. Investors should conduct independent research or consult a licensed financial adviser before making investment decisions.