By Khac Phu Nguyen
Publication Date: 2026-09-15 15:36:00
This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA), the dominant artificial-intelligence accelerator supplier, rebounded about 1.1% to $213.24 Tuesday morning after sliding more than 3% in the previous session. The bounce shows investors are not abandoning the AI trade just yet. Calls for slower frontier-model development have injected a new layer of uncertainty, but there is still no disclosed evidence of major Nvidia customers cancelling chip orders or delaying their massive data-center buildouts.
The spending backdrop remains enormous. Reuters cited BofA Global Research estimates showing Microsoft, Alphabet (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), Meta (NASDAQ:META) and Oracle (NYSE:ORCL) could collectively pour roughly $795 billion into capital expenditures in 2026 before pushing that figure to $1.08 trillion in 2027. That would represent an increase of about 36% in a single year, keeping powerful demand underneath AI accelerators, networking equipment and memory. Tighter AI-safety rules could change the pace of deployment, but investors would need to see actual project delays or budget cuts before the core Nvidia demand story materially weakens.
Nvidia’s latest quarter makes the size of that exposure clear: data-center revenue reached $89 billion, representing about 92.5% of total quarterly sales,…
