AI Spending Is Nearing $1 Trillion Annually. These 2 Stocks Are Most at Risk If It Slows. | The Motley Fool

Artificial intelligence (AI) capital expenditures are approaching $1 trillion annually, which is driving massive opportunities for chipmakers. But investors are growing increasingly concerned about how sustainable this spending boom really is.

Nvidia (NVDA -1.18%) and Micron Technology (MU +5.87%) have been two major beneficiaries of the AI build-out spending spree, and both once again reported record results in their most recent quarters. That said, both could face a reality check if tech giants start cutting back on their AI investments. And one has more to lose.

Nvidia still has the most to lose if AI spending cools

The AI boom has been a big catalyst for Nvidia’s surging stock price, but there’s a natural catch: The company’s growth is now closely tied to how much money the world’s biggest tech companies are willing to pour into AI infrastructure.

Nvidia’s latest results show just how strong that demand has been. In its fiscal 2027 second quarter, which ended July 26, the company reported revenue of $96.2 billion, with its data center business generating $89 billion.

Indeed, revenue from that segment more than doubled from a year earlier, reflecting the intense demand for compute power to train and run advanced AI models.

Now that the vast majority of its sales are coming from the AI build-out, if cloud providers start to delay data center projects, struggle to…