Nvidia's Rise During Earnings Season and the Impact of Artificial Intelligence

Excitement of Earnings Season with Nvidia

Recently, technology giants in the U.S. have shaken the markets with their earnings reports. Especially Amazon's growth in the cloud computing sector has caught the attention of investors. However, Nvidia is suggested to be the real winner of the earnings season, standing out with its investments in artificial intelligence (AI) during this process.

Major Tech Companies Are Investing in AI

Meta announced that it plans to increase its capital expenditures to a range of 70-72 billion dollars this year. Amazon, on the other hand, aims to raise its capital expenditures to 125 billion dollars. For Alphabet, this figure was set at 92 billion dollars. Microsoft is expected to report a faster growth than the previous year according to its global fiscal year. All these expenditures are flowing to semiconductor suppliers, primarily to Nvidia.

Nvidia's Expectations Are Rising

Nvidia CEO Jensen Huang has drawn attention with his recent statements. Huang pointed out that his estimates were approximately 100 billion dollars short, stating that data center revenues could exceed the 300 billion dollar mark in the upcoming period. The current market expectation is lower than 260 billion dollars. This situation has rekindled discussions regarding AI on Wall Street, redirecting investors' attention back to Nvidia.

Amazon's Rise and Meta's Strategy

Amazon's cloud revenues for the third quarter exceeded 20% compared to the previous quarter, increasing its growth rate. At the same time, investors are responding more eagerly to Amazon's AI investments. Meta, on the other hand, is trying to make AI profitable through advertising and platform improvements, but CEO Mark Zuckerberg's vision still carries risks. Investors believe that Meta's short-term profit potential is more limited.

Cards Are Being Redealt Among Major Tech Giants

The shifting dynamics of the earnings season became evident with Nvidia's impact in increasing cloud providers' spending. Wall Street has begun to see Amazon as an AI winner alongside Alphabet. However, it is anticipated that Meta could face increasing risks, and a clear recovery might occur in 2027.