Nvidia, a leading AI chipmaker valued at over $4tn, faces investor scrutiny over its complex and circular deals with AI companies like OpenAI, which resemble vendor financing and raise concerns about sustainability and transparency, especially amid large government and international partnerships. While Nvidia denies similarities to Enron or Lucent, analysts warn that reliance on such financing structures could pose risks if AI growth slows, potentially impacting its financial stability and global economic influence.
US stocks experienced mixed movements amid escalating US-China trade tensions and the start of Q3 earnings reports from major banks. The Dow and S&P 500 rose slightly, while Nasdaq declined. Key corporate developments included Walmart's AI partnership, JPMorgan's earnings, and Nova Minerals' US interest. The market also saw significant activity in critical minerals, AI chip deals, and a surge in gold and silver prices, reflecting ongoing geopolitical and economic uncertainties.
The global stock market continues its rally driven by AI-related deals and partnerships, with tech stocks reaching new highs despite concerns over valuation and a US government shutdown. The S&P 500 is on its longest winning streak since July, and European markets also hit record levels, supported by strong commodity performances like gold and copper. However, some analysts warn that valuations may be overheated and further gains could be gradual.
