Nvidia Stock Price Plunges Amid Concerns Over Massive AI Financing Plan

Nvidia's stock price fell by 2.1% in the afternoon session due to investor concerns over a massive $500 billion financing plan for AI infrastructure and increasing competition from major customers.

The chipmaker is reportedly working with financial firms, including Apollo Global and Blackstone, to fund data centers and power generation needed for the AI boom, which has raised questions about its reliance on external funding for growth.

Billionaire Mark Cuban warned that Nvidia's financing efforts could make the market fragile by subsidizing customer purchases. Additionally, Microsoft's development of its own Maia 300 AI chip presents a significant competitive threat to Nvidia's market share.