Nvidia has arranged a $500 billion lending program with Blackstone, BlackRock and Goldman Sachs to help customers finance chip purchases, backstopping up to $125 billion of the borrowing itself. The deal lands alongside fresh capital raises at Intel and Alphabet, as BofA Securities flags rising concentration in the S&P 500.
Nvidia backs a $500 billion loan program
Nvidia said Monday it is teaming with Blackstone, BlackRock, Goldman Sachs and other Wall Street institutions to arrange $500 billion in loans for its customers, so they can keep buying its computer chips. Nvidia will backstop a quarter of that borrowing itself, up to $125 billion.
Nvidia CEO Jensen Huang said the company's chips are now what he called an investible asset that customers could effectively mortgage. BlackRock CEO Larry Fink described the arrangement as "the beginning of the next future for financial engineering."
Intel and Alphabet raise billions more
The financing news follows other large capital raises among AI-linked companies. Intel is raising $20 billion in new money at $95 a share, more than twice the price the stock traded at the start of the year.
Alphabet, meanwhile, has raised nearly $500 billion through stock sales and borrowing so far this year, as MarketWatch's Christine Ji reported. Academic and Wall Street research cited alongside that report raise questions about what return AI investments will ultimately generate.
BofA flags stock market concentration
Separately, BofA Securities analysts Savita Subramanian, Nicholas Samoyedny and Alex Makedon pointed to elements of concentration in the S&P 500 that echo the distortions seen in the late-1990s dot-com era, as a narrow group of large stocks carries the broader index.
The analysts wrote that current mutual fund holdings show record low levels of active share, meaning fund managers are tracking the stock market benchmark more closely than at any point in their data going back to June 2000.
Source: MarketWatch
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