On the surface, Nvidia’s $900 billion in stock sales since its June record suggests the artificial intelligence spending boom that propelled the company to this point is subsiding. But the underlying story is less dire.
Microsoft Corp., Amazon.com Inc., Alphabet Inc. and Meta Platforms Inc., which collectively account for more than 40% of Nvidia’s revenue, have all said they will continue to invest billions of dollars in AI infrastructure. Meanwhile, Supermicro Computer Inc., which makes data center servers used in AI, told investors it expects as much as $30 billion in revenue over the next 12 months, far exceeding analysts’ expectations. Yet shares of Nvidia, the biggest beneficiary of AI spending, have fallen 25% in less than two months.
