Nvidia stock loses $365 billion in a week: could the AI boom be running out of money?
Nvidia's shares fell 6.6% over five sessions ending 16 October, closing at $214.13, wiping about $365 billion off its market value. The Philadelphia Semiconductor Index dropped 11.4%, highlighting broader sector pressure.
Key points
- Nvidia shares fell 6.6% to $214.13, erasing $365 billion market value in a week.
- CoreWeave bond yields rose above 15% from ~9.6%; net debt ~$30 billion, leases $36 billion, $104 billion backlog.
- Meta forecasts $130 billion‑$145 billion capex; Goldman Sachs sees $1.2 trillion AI hyperscaler spend in 2027.
Analysts say the main issue is financing for data‑centre builders rather than chip demand. CoreWeave, in which Nvidia holds about 11%, saw its bond yields jump above 15% from around 9.6%, and its market value fell nearly a quarter. Phillip Securities’ head of research Paul Chew estimates CoreWeave carries roughly $30 billion net debt and $36 billion lease commitments, backed by a $104 billion revenue backlog; a four‑percentage‑point rise in financing costs could add almost $500 million to annual interest.
Reuters quoted AMP economist My Bui on rising government bond yields and wider corporate credit spreads tightening credit. The Financial Times reported at least 47 major U.S. data‑centre projects have been stalled or cancelled this year. Upcoming Meta earnings, with the company forecasting $130 billion to $145 billion of capex, will test whether hyperscalers continue to fund AI spend. Goldman Sachs projects five AI hyperscalers could spend about $1.2 trillion in 2027.
The story so far
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Nvidia stock loses $365 billion in a week: could the AI boom be running out of money?
invezz.com · 18 October 2026
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