By Antonio Pequeño IV
Publication Date: 2026-08-10 18:54:00
Topline
Nvidia shares dropped about 2.5% on Monday after the Financial Times reported the AI darling was working with some of Wall Street’s largest financial firms to create a $500 billion AI infrastructure funding package, which has drawn concern over concentration risk.
Nvidia shares fell 2.4% on Monday afternoon.
Photo by Jakub Porzycki/NurPhoto via Getty Images
Key Facts
Nvidia’s stock fell 2.4% to around $218 per share, cooling off after rallying 5.6% in the last five days of trading.
The company’s market capitalization dropped $130 billion, with the report briefly sending the stock down 3% on the day as of around 12:30 p.m. EDT.
Nvidia is reportedly working with Apollo Global, Blackstone, BlackRock, Brookfield Asset Management, Goldman Sachs and KKR to invest in AI infrastructure, according to FT, which cited six unnamed people familiar with the matter.
Nvidia typically provides financial backing to help AI partners raise debt, which boosts Nvidia’s chip revenue as the nature of such deals has ginned up concerns over concentrated risk in the technology sector.
Morningstar’s Mike Coop said last week the concentration of AI across technology, communication services and utilities reminded him “quite a lot of 1999,” noting, “that question about diversification does need to be looked at seriously.”
Tangent
Nvidia’s tumble, paired with a positive day of trading for Oracle, allowed Oracle co-founder Larry Ellison to overtake Nvidia chief Jensen Huang as the world’s…