By Keithen Drury
Publication Date: 2026-03-25 21:30:00
It has been a while since Nvidia (NVDA +1.95%) notched a new all-time high. October 2025 was its last such high, and it’s currently down around 15% from those levels.
Despite that poor performance over the past half year, Nvidia has been delivering incredible results along with announcements regarding chip orders. I think a new all-time high for the stock is inevitable, and this is what could send it there.
Image source: Getty Images.
2027 spending should be just as good as in 2026
Many of investors know that the artificial intelligence (AI) hyperscalers are spending a boatload of money on data centers this year. The big four alone — Meta Platforms, Microsoft, Amazon, and Alphabet — are projected to spend around $650 billion on construction, planning, and chip costs.
Nvidia is one of the primary benefactors of this, but investors aren’t necessarily cheering on this spending. Instead, many quite skeptical about the return on investment, apparently, and would much rather see these companies moderate their AI spending. If they did that, Nvidia’s stock would be sold off to an even deeper level than it is now.
However, I don’t see that happening. Generative AI is a once-in-a-lifetime technological advancement, and we haven’t even come close to scratching the surface of what’s possible with agentic AI. As a result, companies are spending hand over fist just in case this does become everything that it promises to be.
This spending isn’t expected to wrap up in 2026, either….
