Nvidia's stock climbed approximately 3.1% on Monday, reaching $191.08, following reports that Apollo Global Management is close to finalizing a $3.4 billion loan. The financing is intended for an entity that would acquire Nvidia's artificial intelligence processors and lease them to Elon Musk's xAI venture.
This development underscores a growing trend where specialized financiers provide capital for expensive AI hardware, enabling companies to access cutting-edge technology without massive upfront expenditures. Apollo had previously arranged a similar $3.5 billion loan for xAI last November.
Oracle shares jumped 11.2% to $158.83 after D.A. Davidson raised its rating on the stock from 'neutral' to 'buy,' maintaining a $180 price target. The firm expressed optimism that a 'revamped OpenAI' could fulfill its cloud infrastructure commitments to Oracle this year.
Other semiconductor and AI-related stocks also posted gains. Advanced Micro Devices rose about 3.4% to $215.48, while Broadcom increased roughly 4.4% to $347.46. Microsoft added 2.8%, helping to stabilize major technology stocks.
Investors are now turning their attention to key economic indicators, including the delayed January nonfarm payrolls report expected on February 11 and the Consumer Price Index data scheduled for February 13. These figures will provide crucial signals regarding the Federal Reserve's future interest rate path.
Later this month, market focus will shift to corporate earnings, with Nvidia's quarterly results serving as a critical barometer for AI-driven demand and pricing power. The potential completion of the Apollo-xAI financing deal this week remains another point of interest for traders.
