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NVDA Earnings Spark Concerns Over Circular AI Chip Demand

NVDA Earnings Spark Concerns Over Circular AI Chip Demand

Author:

Global Cryptocurrency

Published:

2025-11-19 09:01:01

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BTCCSquare news:

Nvidia's upcoming earnings report has ignited fears of artificial demand for its AI chips, driven by circular financing arrangements. Analysts estimate that for every $10 billion Nvidia invests in AI startups like OpenAI, $35 billion flows back as GPU purchases—a pattern raising red flags about sustainable growth.

The stock faces heightened volatility, with options markets pricing in a potential 7% swing post-earnings. As Nvidia accounts for 8% of the S&P 500, these concerns Ripple through Dow Jones futures, threatening broader market stability. "This smells like financial engineering," remarked one Wall Street analyst, describing the self-reinforcing investment loop.

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