Should CoreWeave and Nebius Group Investors Be Worried About Circular Financing? Here's What the Numbers Say

Published September 3, 2026 · Category: Finance

Overview

Some investors are getting spooked by all the talk of circular financing in the artificial intelligence (AI) build-out, with the issue even being mentioned by Nvidia on its recent earnings call.

Nvidia has been investing significant capital from its balance sheet into AI labs and cloud computing providers -- aka neoclouds -- that are turning around and using that same money to buy Nvidia processors to equip their data centers.

Details

Two companies taking part in such circular financing arrangements are CoreWeave (NASDAQ: CRWV) and Nebius Group (NASDAQ: NBIS), and their share prices are now down 41% and 30%, respectively, from their all-time highs.

Continue reading

Source

Originally published at www.fool.com.

Related Articles

• 3 No-Brainer Tech Stocks to Buy With $5,000 Right Now
• Dutch central bank moves gold bars out of U.S. and Canada, citing ‘crisis preparedness’
• Tim Cook, Elon Musk, Andy Jassy, and Jensen Huang All Just Warned Investors About the Same Thing. Spoiler Alert: It's Fantastic News for Micron and Sandisk.