During the GTC event in Berlin on October 22, 2026, Nvidia CEO Jensen Huang highlighted a growing disparity between the high demand for specialized AI cloud providers and the available capital to fund them.
Huang noted that while orders for Nvidia chips arrive daily or weekly, neocloud operators face significant challenges in securing the necessary working capital for infrastructure, power, and hardware procurement.
To address this, Nvidia is collaborating with financial institutions to mobilize over $500 billion in third-party capital for AI infrastructure projects.
The market reacted sharply on the day of the speech, with the Philadelphia Semiconductor Index dropping approximately 6.7%, marking its largest single-day decline since June.
All 30 component stocks of the index closed lower, while the Nasdaq Composite fell 2.6%. The pressure on the sector was further illustrated by CoreWeave, which faced scrutiny over its debt-heavy expansion.
