TLDR
- NVDA stock fell below $200 as selling pressure returned across the semiconductor sector.
- Apple regained the top market value position after Nvidia’s valuation declined.
- Nvidia is reportedly considering $250 billion in financing guarantees for an OpenAI data-center project.
- The proposed OpenAI facility could require more than $500 billion in total spending.
- Cheaper Chinese AI models, including Kimi K3, raised concerns about future demand for computing power.
NVDA stock fell below $200 on Monday as investors reduced exposure to major semiconductor companies. Nvidia shares traded near $196.69 after dropping almost 5% during the session. The decline lowered Nvidia’s market value to about $4.80 trillion.
Apple moved in the opposite direction. Its shares rose above $335, lifting its market value to about $4.93 trillion. The move allowed Apple to overtake Nvidia as the world’s most valuable listed company.
NVDA Stock Drops With Semiconductor Sector
The NVDA stock decline came during a wider selloff across semiconductor companies. Investors sold shares of chip designers and memory manufacturers as concerns about AI spending returned.
Nvidia had previously recovered above $215 after approaching the $200 level. However, buyers failed to maintain the recovery. The latest break below $200 shows that short-term selling pressure remains strong.
The decline also reflects growing caution toward companies linked to the AI investment cycle. These businesses have gained from strong demand for data centers, processors and networking systems. Investors now want clearer proof that the spending can produce steady profits.
$250 Billion OpenAI Plan Raises Questions
Nvidia is reportedly discussing a financial guarantee worth about $250 billion for an OpenAI data-center project. The guarantee could help OpenAI secure better borrowing terms for a planned facility in southern Ohio.
SoftBank’s SB Energy is developing the 10-gigawatt site. The full project could require more than $500 billion, including the cost of chips and other computing equipment. The first part of the center may begin operating in 2028.
The possible agreement could support future demand for Nvidia processors. However, it has also raised questions about how AI companies will fund large infrastructure plans.
Investors are watching whether chip suppliers will increasingly support projects that purchase their products. Such arrangements may expose NVDA stock to financing risks alongside normal product demand.
China’s Cheap AI Models Challenge Spending Plans
Competition from China has added another concern. Moonshot AI’s Kimi K3 offers an open-weight model designed to compete with major American systems at a lower cost.
Chinese developers have focused on producing capable models that require fewer resources. Open-weight releases also allow developers to download, change, and deploy the technology more freely.
Cheaper models do not immediately remove the need for Nvidia processors. However, greater efficiency could slow the growth of computing demand if companies achieve similar results with fewer chips.
Apple Reclaims the Top Position
Apple benefited as investors moved away from AI infrastructure stocks. Its market value reached roughly $4.93 trillion, compared with Nvidia’s $4.80 trillion.
NVDA stock remains supported by Nvidia’s lead in AI accelerators. Yet the company faces pressure from Chinese models, custom chips, and the cost of data-center expansion. A recovery above $200 may depend on renewed confidence in long-term AI spending.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
