Nvidia shares fall 4% as AI financing worries and rising oil prices hit chip stocks

Nvidia shares fell more than 4% on Thursday as chip stocks declined amid investor concerns about financing for the artificial-intelligence boom, with the Nasdaq Composite down 2.5% and the Philadelphia Semiconductor Index dropping over 6%. Rising oil prices, with Brent crude climbing nearly 3% above $112 per barrel, added uncertainty, while worries about circular investments—where companies fund partners who then buy their products—intensified pressure on the tech sector. Nvidia CEO Jensen Huang said demand from neocloud providers remains "exceptionally high" but acknowledged a capital shortage to fund expansion, while Lam Research reported record revenue but cited short-term supply chain constraints.