By Hillary Remy, Aparajita Chatterjee
Publication Date: 2026-10-31 19:37:00
Nvidia has been one of the biggest winners of the AI boom, but its stock has cooled off as investors fret that Big Tech is overspending on data centers. The shares climbed more than 1,200% over the past three calendar years, yet they’re up only about 13% so far in 2026.
The stock has at least held up better than most. When AI and chip stocks lost more than $1 trillion in combined value during one week in mid-October, Nvidia fared better than many of its peers. Now one of its biggest customers has offered a fresh reason for optimism. Microsoft’s latest report showed where its AI money is going, and much of it is landing on chips.
Microsoft’s spending tilts heavily toward chips
Microsoft reported its fiscal first-quarter results on October 28, posting revenue of $92.3 billion, up 19% from a year earlier, while its Azure cloud business grew 48%, according to Microsoft. Net income rose 32% to $36.6 billion. Strong cloud demand like that is exactly…
