Morgan Stanley analysts Lindsay Tyler and Nishant Satyam initiated coverage on Nvidia with a "neutral" rating, warning that the company's $500bn AI infrastructure financing partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR create significant contingent credit exposure. CEO Jensen Huang described the platform as addressing circular financing concerns, with Nvidia providing residual-value support for up to 25% of opportunities. Analysts estimate peak tail risk exposure could reach nearly $90bn by 2028, based on a template of Broadcom's $35bn chip-lease deal with Anthropic funded by Apollo and Blackstone.

Rating agencies may treat Nvidia's ~$125bn in financing structures as debt-like. Additional concerns center on opaque revenue-sharing agreements with neocloud providers, where Nvidia guarantees minimum GPU rental pricing. Morgan Stanley's equity team suggests Nvidia believes hyperscalers are underinvesting due to free cash flow constraints and power limitations, driving the need for new capital sources. Critics argue this may create artificial demand from smaller players unable to access ASIC or AMD alternatives.