Nvidia and Tesla to invest $2.8B together in Samsung Electro-Mechanics for advanced chip-substrate factories; 'circular financing' worries knock NVDA 2.2%
What happened
Nvidia and Tesla will together invest about $2.8 billion in Samsung Electro-Mechanics to build factories producing advanced chip substrates, Seoul's Maeil Business Newspaper reported, with Nvidia's portion at around $2 billion. Barron's flagged the timing as awkward: it landed while the market was already fretting over AI spending sustainability after mixed Meta and Tesla earnings. Nvidia stock fell 2.2% in premarket trading on Thursday, all but erasing the 2.5% rally it posted Wednesday on Jensen Huang's GTC Berlin keynote. Barron's has reached out to Nvidia for comment; neither company has formally confirmed the report.
Why it matters & what’s next are part of Pro, along with the audio summary.
Start your free 14-day trialWho’s affected
- Nvidia (NVDA): -2.2% premarket, erasing Wednesday's 2.5% rally; the deal feeds the circular-financing narrative investors are already worried about
- Tesla (TSLA): co-investor; shares already -5.3% premarket on its capex cut, so the deal is a secondary sentiment input
- Samsung Electro-Mechanics: direct beneficiary of ~$2.8B in new factory investment
- Semiconductor supply chain broadly: read-through for substrate and advanced-packaging names; chip stocks already under pressure (INTC -5.1%, AMD/QCOM/MRVL/AVGO/MU -2.9% to -5.3% premarket)
Sources