Nvidia stock drops 4% as AI funding concerns hit chip sector

Nvidia's stock fell over 4% on Thursday as semiconductor shares faced renewed pressure amid investor concerns about the financing required to sustain the AI boom. The selloff spread across the tech sector, with the Nasdaq Composite down 2.5%, the S&P 500 down 1.4%, and the Philadelphia Semiconductor Index dropping over 6%. Rising oil prices, with Brent crude up nearly 3% to over $112 per barrel, added to market uncertainty. Nvidia CEO Jensen Huang said demand for neocloud providers remains "off the charts," but noted a scarcity of capital to fuel growth. Concerns about circular financing and supply chain bottlenecks, highlighted by Lam Research's guidance, also weighed on investor sentiment.