Nvidia shares dropped on Monday while the company worked through several deals with SK Hynix, OpenAI, and Siemens. At the same time, chip stocks in general faced new pressure.
Nvidia’s stock closed down almost 5%, adding to a 0.9% drop from the previous session. Many chip stocks fell in the morning after news that a state-backed Chinese company started mass-producing chip-making equipment.
Investors were also considering reports that Nvidia may guarantee $250 billion in financing for OpenAI. This could support the largest data-center project so far, helping OpenAI lease a facility in Ohio being developed by SoftBank’s energy subsidiary, according to The Wall Street Journal. OpenAI and Nvidia did not respond right away to requests for comment.
Nvidia has not kept up with the broader chip rally this year. Its shares are up only 5.4%, while the PHLX Semiconductor Index, which tracks the 30 largest U.S.-listed chip companies, has gained 63%. The index also fell 2.2% on Monday.
In other news, Nvidia announced a $500 billion deal with South Korean memory chip maker SK Hynix late Friday, ensuring a steady long-term supply of AI memory. Over the weekend, Nvidia also expanded its partnership with Siemens to provide self-verifying agentic AI workflows.
Even with all the major deals, Nvidia shares were still among the weaker performers in the chip sector on Monday.
