By Manali Pradhan, CFA
Publication Date: 2026-03-31 09:15:00
Shares of Nvidia (NVDA 1.40%) are trading down by 10.2% so far in 2026, despite the company reporting a 65% year-over-year jump in revenue to $215.9 billion in fiscal 2026 (ending Jan. 25, 2026). Some investors are now questioning whether the current level of artificial intelligence (AI) infrastructure spending, which is driving the company’s growth, can be sustained over time.
However, those concerns are based on one flawed assumption.
Image source: Getty Images.
AI infrastructure demand is a multiyear trend
Nvidia bears continue to treat current AI spending as a short-term surge led by hyperscalers. They point to the company’s slowing sequential revenue growth, rising competitive pressures, higher customer concentration, and increasing geopolitical risks as signs that demand could normalize.
However, the reality is more nuanced. While these concerns are valid, Nvidia remains a key enabler of the global AI infrastructure buildout. At its GTC AI Conference 2026 keynote address, CEO Jensen Huang announced that Nvidia now sees at least $1 trillion worth of demand for its AI systems in 2026 and 2027, up from roughly $500 billion of visible demand the company had for its Blackwell and Rubin systems through 2026 a year ago.
Today’s Change
(-1.40%) $-2.35
Current Price
$165.17
Key Data Points
Market Cap
$4.0T
Day’s Range
$164.27 – $169.45
52wk Range
$86.62 – $212.19
Volume
916K
Avg Vol
180M
Gross Margin
71.07%
Dividend Yield
0.02%
The increasing adoption of AI reasoning models and AI agents…
