NEW YORK, July 28, 2026, 04:13 EDT — Nvidia shares fell 5% in U.S. premarket trading, erasing around $250 billion in market value—the same amount reportedly arranged as a financial backstop for OpenAI.
- Nvidia finished Monday at $196.51, a drop of 4.99%. Its estimated market-cap decline was roughly $250.2 billion.
- A $250 billion guarantee linked to OpenAI would represent a gross guarantee exposure for Nvidia that is 71 times larger than what the company has currently disclosed.
- Microsoft and Meta are set to release results on Wednesday. Amazon’s report arrives Thursday, providing another gauge of AI investment this week.
Nvidia Corporation NASDAQ:NVDA saw an estimated $250.2 billion wiped from its market value on Monday, a figure nearly equal to the OpenAI financing guarantee currently being discussed, according to reports.
The calculation is an early estimate. It reflects Monday’s $10.33 drop in Nvidia stock, using the company’s 24.221 billion shares outstanding as of April 26.
The matching figures do not indicate that investors valued the proposal on a dollar-for-dollar basis. However, they highlight the extent of Nvidia’s shifting position. The company could play a larger role in backing the financing for its own demand.
Nvidia shares ended at $196.51, falling 4.99% after dipping to $195.44 earlier in the session. The stock had risen 2.0% over the prior week, compared to a 2.0% decline in the Nasdaq. Monday’s drop negated that outperformance.
Overnight, pressure intensified. South Korea’s KOSPI dropped close to 10%, activating a circuit breaker. Japan’s Nikkei declined 4.4% amid investor doubts about AI financing and concerns over heightened competition from China.
Nvidia is in talks over a potential guarantee of as much as $250 billion, the Wall Street Journal said. The guarantee would back leasing and construction loans for a planned 10-gigawatt data centre in Ohio, a project involving SoftBank Group TYO:9984’s SB Energy. OpenAI may be a prospective tenant.
This would not involve a $250 billion immediate payment. Nvidia would guarantee the debt, lowering lenders’ exposure in case the tenant defaulted. There are also talks about separate financing of up to $350 billion for GPUs.
A separate report added to the balance-sheet discussion on Tuesday. The Financial Times reported that Nvidia has agreed to lease Hut 8 Corp. NASDAQ:HUT’s Texas campus, which has a capacity of one gigawatt. The initial agreement carries a value of $19.6 billion for 15 years, with the total value possibly rising to $50.2 billion if renewals occur.
Reuters was unable to independently confirm the report. Nvidia stated it was collaborating with infrastructure partners, but did not confirm or deny if it was the tenant.
The contrast between the balance sheets is striking:
| Nvidia measure | Disclosed amount | Reported $250 billion backstop as multiple |
|---|---|---|
| Current partner lease commitments | $3.5 billion capped gross liability | 71.4 times |
| Holdings in cash, equivalents and liquid debt | $50.3 billion | 5.0 times |
| Assets in cash, debt plus marketable equity | $80.5 billion | 3.1 times |
| Operating cash flow in fiscal Q1 | $50.3 billion | 5.0 times |
The multiples provide straightforward comparisons. They are not forecasts of cash losses. Nvidia’s current guarantees are triggered solely if partners default, and are partially secured by $712 million placed in escrow.
Nvidia posted strong earnings, with fiscal first-quarter revenue climbing to $81.6 billion, up 85% year-on-year. Data-centre revenue advanced 92% to hit $75.2 billion, and operating cash flow stood at $50.3 billion.
However, its obligations are substantial. Nvidia reported $119 billion in manufacturing and capacity commitments as of April 26. In addition, multi-year agreements with cloud service providers contributed an extra $30 billion.
Nvidia said on Monday it has formed a long-term collaboration with Safe Superintelligence and confirmed an investment. Reuters, referring to a source with knowledge of the agreement, reported that the equity investment amounts to $5 billion. The company is making investments to ensure future workloads.
Chief Executive Jensen Huang said, “We are excited to see what new breakthroughs SSI will discover powered by our Vera Rubin platform.” SSI anticipates the collaboration will boost its computing resources by a factor of ten. NVIDIA Newsroom
The coming week will put the focus on demand. Microsoft Corporation NASDAQ:MSFT and Meta Platforms, Inc. NASDAQ:META are scheduled to announce results after the market closes on Wednesday. Amazon.com, Inc. NASDAQ:AMZN is set to follow with its update on Thursday. The companies’ capital-expenditure strategies will indicate if appetite for AI infrastructure continues to surpass funding worries.
Risks: OpenAI and Texas deals have not been verified, and talks may shift direction or fail. Guarantees involved represent conditional rather than up-front compensation. Robust hyperscaler forecasts might undo Monday’s reaction, but if results disappoint, losses could intensify.
The key issue for the stock has changed. Investors are now factoring in both the volume of chips Nvidia can sell and the amount of credit it may need to offer to maintain demand.
Related articles: NASDAQ:NVDA
