NVIDIA is partnering with financial firms like Apollo to secure a massive $500 billion debt package to finance its AI ambitions, using computer power as collateral. This strategy involves Special Purpose Vehicles (SPVs) borrowing tens of billions of dollars, with NVIDIA compute serving as collateral, which is then leased to NVIDIA customers. This approach allows third-party capital to fund these initiatives, creating a separation from NVIDIA directly financing its own customers and attracting widespread participation from investors. Meanwhile, Intel is also active in the capital markets, raising $20 billion in an upside share sale that saw demand exceeding $50 billion.
In other corporate news, Hims & Hers saw its shares drop by 6.2% after reporting lower-than-expected video revenue. The company, which sells cheaper GLP-1 alternatives, has resorted to selling less profitable brand-name drugs, leading to pressure on its margins. Rocket Lab's shares fell by 7.5% in premarket trading after the company warned of further delays for its Neutron rocket, designed to compete with SpaceX's Falcon 9. The company is no longer committing to a launch this year, despite otherwise reporting record quarters.
Riot Platforms, a Bitcoin miner that has diversified into an AI data center company, experienced a nearly 20% surge in premarket shares after landing a significant $9.1 billion deal with Anthropic. This agreement involves Anthropic using capacity at one of Riot's Texas campuses for over 20 years, providing substantial credibility to Riot's data center business. Elsewhere, Apple is reportedly on track to release an all-glass iPhone next year, potentially marking the iPhone's 20th anniversary with special models, according to an analyst report from Jefferies.
IHG Hotels & Resorts reported strong first-half results, with total revenue up by nearly 6%, operating profit up 10%, and earnings-per-share up 13%. The company noted widespread strength across all its 21 brands and regions, with the World Cup contributing only 1% to second-quarter U.S. revenue. The CEO, Elie Maalouf, highlighted strong fundamentals in the U.S., including high employment and consumer spending, and a robust summer travel season in Europe, particularly from American tourists. Travel in Asia, including China and Japan, also performed well, offsetting impacts in the Middle East. IHG sees these positive trends continuing into the second half of the year and into 2027.
In broader market discussions, experts note that conditions for issuing capital for AI data center buildouts are favorable, though at incrementally wider spreads, indicating investors are demanding higher returns for their investments. Morgan Stanley maintains an overweight rating on SpaceX, citing the planned acquisition of Cursor as a potential major upside. Wall Street's strong interest in the AI investment boom is evident, with firms eager to participate in financing opportunities like NVIDIA's, with Athena Capital suggesting that new infrastructure will offer cleaner exposure to AI compared to already priced narratives in existing models.
