From Yahoo Finance: 2025-05-23 11:40:00

Nvidia’s stock surge is fueled by Big Tech’s investment in its AI chips. Microsoft is Nvidia’s largest revenue driver, followed by Meta, Amazon, and Google. Tesla is the 15th largest customer. Bloomberg estimates Microsoft spends 47% of capex on Nvidia, and Meta spends 25%. Big Tech’s spending on AI is set to exceed $330 billion this year.

Microsoft, Meta, Google, and Amazon are developing custom AI chips for their specific needs, while Nvidia’s GPUs are more general-purpose. Concerns arise over Big Tech moderating AI hardware spending. Nvidia’s data center revenue is expected to slow down, with analysts tracking a deceleration in AI chip spending.

Nvidia’s fiscal year 2026 Q1 results are awaited on May 28. Analysts predict a slowdown in data center spending on Nvidia’s AI chips. Despite concerns, major tech firms remain committed to their massive spending plans on AI. Microsoft reaffirmed an $80 billion spending plan for AI data centers, while Meta increased its capex outlook for 2025.

Laura Bratton is a reporter for Yahoo Finance. Stay updated on the latest technology news impacting the stock market. Read more financial and business news from Yahoo Finance.

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