AI Stocks Crash After Report of NVIDIA Plans to Finance $250 Billion OpenAI Buildout

AI hardware stocks experienced a broad selloff on Monday after The Wall Street Journal reported that NVIDIA is in talks to guarantee up to $250 billion in financing for OpenAI's data-center buildout. NVIDIA shares fell 5%, AMD dropped 8%, and Dell slid 4%, while Intel fell 4% on profit-taking. The report reignited 'circular financing' concerns, where NVIDIA would fund a customer that then buys its GPUs. Despite the selloff, analysts note that the fundamental bull case remains intact, with NVIDIA guiding $91 billion in Q2 revenue and AMD's data center revenue growing 57% YoY. Oracle shares rose 4% on Monday but are down 20% over the past month on similar exposure concerns, while Alphabet rose 3% after raising its capex forecast.