On Monday, Nvidia (NVDA) kicked off another round of monster-sized financing to boost AI-related infrastructure spending.
Nvidia signed a memorandum of understanding with several private credit firms. The MOU involves Apollo Global Management (APO), BlackRock (BLK), Blackstone (BX), and Brookfield Asset Management (BAM). They want to bring $500 billion in financing. This would have a corporate infrastructure like commercial real estate. In effect, assets would back the financing.
NVDA stock pulled back in reaction to the announcement. NVDA stock lost 2.86% yesterday.
The energy sector roared ahead, with Marathon Petroleum (MPC) jumping by 7.42% to close at $320.32. Volume traded around double the daily average, as investors realized that Iran’s chokehold on the Strait of Hormuz will not likely end. The high chance of tolls levied on ships adds costs for oil transport. It also cuts shipping traffic through the Strait.
Optical networking stocks dove to start the week. Coherent (COHR) lost 14.24%, erasing the last three days of the rally. COHR stock tripled from its 52-week low, ahead of its earnings report tomorrow.
Lumentum (LITE), Ciena (CIEN), and Corning (GLW) fell alongside Coherent. Traders likely took profits, worried that Coherent might sell off after its quarterly earnings report.
AI-related chip stocks also fell. Marvell (MRVL), Qualcomm (QCOM), Intel (INTC), AMD (AMD), and Applied Materials (AMAT) declined on Monday.
