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Nvidia’s AI Chips Drive Record Data-Center Sales as Investors Debate ‘Bargain’ Valuation

Giant 2026 spending plans by cloud providers signal years of demand for Nvidia’s GPUs.

Overview

  • Nvidia’s latest quarterly report showed $68.1 billion in revenue with $62.3 billion from data-center hardware, highlighting how AI servers now dominate its business.
  • Analysts and guidance point to very high near-term growth, yet shares trade at about 22.8 times forward earnings, close to the market average cited in the coverage.
  • Big Tech has mapped out huge 2026 capital spending for AI infrastructure, with Amazon at $200 billion, Alphabet guiding up to $185 billion, and Meta up to $135 billion.
  • Industry reporting notes that combined capex commitments from major platforms could reach up to $700 billion this year, a large share of which funds data centers that buy accelerators like Nvidia’s GPUs.
  • Nvidia’s current Hopper and Blackwell chips anchor leading AI systems, and coverage says the company is rolling out the next Rubin generation this year with higher performance and efficiency.