Nvidia Stock Slump Triggers $1.3 Trillion Semiconductor Selloff and Hedge Fund Losses
Nvidia shares fell 2.99% to $191.12, erasing roughly $238 billion of market value in two days after reports that the company is discussing a $250 billion financing guarantee for OpenAI tied to a U.S. data‑center project. Analysts warned that such “circular financing” could inflate demand for AI infrastructure and raise credit‑risk concerns.
The broader AI chip sector saw about $1.3 trillion wiped from market capitalization this week. Major memory chipmakers SK Hynix, Samsung Electronics and Micron Technology each lost between $170 billion and $180 billion, while AMD and TSMC shed roughly $110 billion and $119 billion respectively. The sell‑off spread to Asian markets, with South Korea’s Kospi plunging nearly 11% in its worst session in five months.
Asian equity hedge funds that had profited from early AI bets recorded an average 18.6% loss this month, the largest monthly drawdown on record, erasing about 21 percentage points of year‑to‑date gains. The downturn also hit Korean retail investors, who saw the KOSPI tumble about 25% over four weeks after a 180% rally, raising stress levels and forcing leveraged position liquidations.
Prediction‑market traders on Polymarket gave Nvidia a 50% chance of closing August above $240, while also assigning a 52% probability of ending below $200, underscoring the heightened volatility expectations ahead of the company’s upcoming earnings report.
Entities: Micron Technology · Nvidia Corp · Nvidia Corp. · OpenAI · Polymarket · SK Hynix · Samsung Electronics
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 2 SOURCES] South Korea's Kospi index fell nearly 11% in a single session, its worst in about five months. (market move reporting)
- [○ 1 SOURCE] AI chip companies collectively lost about $1.3 trillion in market capitalization this week. (analysis of semiconductor sector sell‑off)
- [● 2 SOURCES] Asian equity hedge funds averaged an 18.6% loss this month, the biggest monthly drawdown on record. (Goldman Sachs note on hedge‑fund performance)
- [○ 1 SOURCE] SK Hynix, Samsung Electronics and Micron Technology each lost roughly $170‑180 billion in market value. (sector loss breakdown)
- [○ 1 SOURCE] Nvidia is in talks to provide up to $250 billion in financing guarantees for OpenAI for a U.S. data‑center project. (report on circular financing concerns)
- [○ 1 SOURCE] Polymarket assigned a 50% probability that Nvidia will close August above $240. (prediction‑market pricing)
- [○ 1 SOURCE] Nvidia shares fell 2.99% to $191.12, erasing about $238 billion in market value over two days. (reporting on Nvidia stock slide)
- [○ 1 SOURCE] Korean retail investors saw the KOSPI drop roughly 25% over four weeks after a 180% rally, raising stress levels. (report on Korean investor stress)