By Luke Kawa
Publication Date: 2026-04-30 15:52:00
On the surface, it’s difficult to see that Nvidia is getting clobbered after the Magnificent 7’s four hyperscalers reported earnings after the close on Wednesday.
The 2026 capex guidance for this group — which went up about $15 billion thanks to Meta and Google’s updates — has been a shorthand for Nvidia’s earnings outlook throughout the AI boom. That makes sense, as it’s one of the biggest suppliers to all four firms.
But the AI boom evolves, and one reason being offered for Nvidia’s sharp sell-off is that its most important product — GPUs — simply aren’t the key missing ingredient in the AI boom right now. Rather, they’re something these companies are trying to do without while building up their own suite of offerings.
$NVDA The big AI spending numbers out of the mega-caps Wed night aren’t necessarily bullish for Nvidia for two reasons: 1) 2 of the companies in question are building enormous chip businesses of their own (Google and Amazon) and 2) budgets are being inflated really because of…
— Vital Knowledge Media (@knowledge_vital) April 30, 2026
After a spike during Q4 earnings, hyperscalers aren’t talking as much about the OG brains behind the AI boom…
…but they are talking a lot about the hardware they’re bringing to the table…
Amazon CEO Andy Jassy:
“Nobody has a better set of chips across AI and CPU workloads than AWS with Trainium and Graviton, and we’re unusually well positioned for this AI inflection we’re in the early…
