By Mark Hartley
Publication Date: 2026-04-15 06:26:00
It’s no secret that the Nvidia (NASDAQ: NVDA) share price relies heavily on artificial intelligence (AI) spending. As the chipmaker that powers most datacentres, its fortunes are closely tied to the technology’s success.
But with 30%-50% of planned US data warehouses now delayed or scrapped, how exposed is the world’s largest company?
The question now is not just whether the AI bubble’s cooling, but how much damage that could do to Nvidia’s growth story?
On the plus side, the business is still firing on all cylinders. In fiscal 2026, it pulled in $215.9bn of revenue, up 65% from the year before. Datacentre sales alone hit $62.3bn in the last quarter, making up over 90% of total revenue. That’s not just growth — it’s dominance in the AI hardware market.
Profit margins are also impressive, with datacentre gross margins running above 70% in recent quarters. The company generates huge free cash flow, which it can reinvest in new chips, supply lines and partnerships. That all underpins the current valuation.
But the bubble isn’t the only issue.
Even before the talk of cancelled data centers, Nvidia’s share price was already expensive. The stock trades at a trailing price-to-earnings (P/E) ratio around 38, and its market-cap of roughly $4.58trn makes it the most valuable in the world.
But that valuation assumes datacentre demand keeps rising, not stabilising or falling. If nearly half of planned US…
