ETF Abnormality | Southern 2X Long NVIDIA falls over 5%, NVIDIA's AI investment plan raises concerns about circular financing again
The Southern 2X Long NVIDIA has dropped over 5%, currently down 5.69% at HKD 172.25, with a trading volume of HKD 421,300. In terms of news, on Monday, NVIDIA's stock price fell more than 3% at one point. Meanwhile, the 5-year credit default swap (CDS) rose to 77.215 basis points, with a daily increase of about 5.3 basis points, marking the largest single-day increase in two weeks. According to the announcement, NVIDIA has signed agreements to collaborate with Apollo Global Management, Blackstone, BlackRock, Brookfield, Goldman Sachs, and KKR to establish a "computing power financing platform." These companies aim to deploy over USD 500 billion in external capital over the next few years. NVIDIA will play the role of a collaborative leader rather than a funding party. Some investors are concerned that NVIDIA is driving up overall demand and valuations by entering into agreements worth hundreds of billions of dollars with various participants in the AI ecosystem, while these participants themselves are also highly dependent on the AI industry to maintain high prosperity, thus forming a "circular financing" structure
According to the Zhitong Finance APP, the Southern Double Long NVIDIA (07788) has fallen over 5%, currently down 5.69% at HKD 172.25, with a transaction volume of HKD 421,300.
In terms of news, on Monday, NVIDIA's stock price once dropped over 3%. Meanwhile, the 5-year credit default swap (CDS) rose to 77.215 basis points, with a daily increase of about 5.3 basis points, marking the largest single-day increase in two weeks. According to the announcement, NVIDIA has signed agreements to collaborate with Apollo Global Management, Blackstone, BlackRock, Brookfield, Goldman Sachs, and KKR to establish a "computing power financing platform."
The goal of these companies is to deploy over USD 500 billion in external capital over the next few years. NVIDIA will play the role of a collaborative leader rather than a funding party. Some investors are concerned that NVIDIA is driving up overall demand and valuation by entering into agreements worth hundreds of billions of dollars with various participants in the AI ecosystem, while these participants themselves are also highly dependent on the AI industry to maintain high prosperity, thus forming a "circular financing" structure
