Nvidia falls nearly 5 percent as renewed circular financing worries drag chip stocks lower

Nvidia shares fell nearly 5 percent on Monday 27 July 2026, dragging the whole chip sector lower. The trigger was reports that Nvidia may backstop $250 billion in funding for OpenAI to lease computing power from a US data centre project, reviving concern about so-called circular financing, an arrangement in which a supplier is also a major investor in its own customer.

In the same session AMD fell more than 5 percent and SanDisk more than 10 percent. Among memory makers, Micron dropped more than 2 percent and SK Hynix more than 6 percent.

The selling spread to Asian markets on Tuesday 28 July and kept US equity futures under pressure. Investors are now waiting on earnings from Amazon, Meta, Microsoft and Apple later this week for a clearer read on hyperscaler capital spending.