Morgan Stanley initiated coverage of Nvidia’s credit profile with a neutral rating, projecting that the chipmaker’s total AI-related credit exposure could hit roughly $200 billion by the end of 2028, including around $170 billion in adjustments and contingent obligations largely off balance sheet. Credit markets are already reacting, with Nvidia’s five-year CDS spreads spiking to a record 82 basis points on July 27 while the stock fell roughly 5%. Proposed financing arrangements including $250 billion backing for OpenAI and a $500 billion platform with Apollo, BlackRock and KKR represent potential commitments exceeding $750 billion. Analysts including Michael Burry and Jim Chanos have raised concerns about Nvidia’s expanding financial footprint in AI infrastructure.
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