Prediction: Nvidia Stock Is Going to Drop After Feb. 26
Tech giants are dumping mountains of cash into artificial intelligence (AI) data centers. Microsoft plans to spend $80 billion this year to expand its AI capacity. Amazon is boosting its total capital spending, spread across its retail and cloud businesses, to $100 billion to accelerate its AI efforts. And Meta Platforms will pour $65 billion into its data centers to fuel its AI ambitions.On the surface, this all sounds great for Nvidia (NASDAQ: NVDA) stock. The company dominates the market for powerful AI accelerators, and second place AMD has already put forth a disappointing forecast for its own AI chips sales this year. Nvidia is going to scoop up the lion's share of the spending that goes toward AI accelerators.Forecasts for AI accelerator sales paint a rosy picture for Nvidia. AMD, for example, once predicted that AI accelerators would generate $500 billion in industrywide revenue in 2028.Continue reading
Tech giants are dumping mountains of cash into artificial intelligence (AI) data centers. Microsoft plans to spend $80 billion this year to expand its AI capacity. Amazon is boosting its total capital spending, spread across its retail and cloud businesses, to $100 billion to accelerate its AI efforts. And Meta Platforms will pour $65 billion into its data centers to fuel its AI ambitions.
On the surface, this all sounds great for Nvidia (NASDAQ: NVDA) stock. The company dominates the market for powerful AI accelerators, and second place AMD has already put forth a disappointing forecast for its own AI chips sales this year. Nvidia is going to scoop up the lion's share of the spending that goes toward AI accelerators.
Forecasts for AI accelerator sales paint a rosy picture for Nvidia. AMD, for example, once predicted that AI accelerators would generate $500 billion in industrywide revenue in 2028.
