tech
February 24, 2026
Nvidia earnings report collides with Wall Street skepticism over AI spending
Nvidia is the only megacap tech stock to notch gains this year as investors have turned cautious on the hefty amounts of spending on AI infrastructure.
TL;DR
- Nvidia is the only one of the eight trillion-dollar tech companies to see stock gains in the current year.
- Major tech companies like Microsoft, Amazon, and Tesla have experienced double-digit declines.
- Nvidia's largest customers are increasing their spending on AI infrastructure, boosting the chipmaker's prospects.
- Hyperscale capital expenditure forecasts for 2026 have surpassed previous expectations, with AI infrastructure being a primary focus.
- Nvidia derives approximately 90% of its revenue from its data center business, which supplies GPUs and AI systems.
- Alphabet, Microsoft, Meta, and Amazon are projected to spend nearly $700 billion combined on AI expansion this year.
- Skeptics fear the tech industry is overbuilding and that any slowdown could disproportionately affect Nvidia.
- Analysts expect Nvidia to report significant revenue growth for its fiscal fourth quarter and the subsequent quarter.
- Nvidia is preparing to launch its next-generation Vera Rubin systems later this year.
- The recent acquisition of Groq for approximately $20 billion will bolster Nvidia's capabilities in the AI inference market.
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