This article first appeared on GuruFocus.
Nvidia (NASDAQ:NVDA) shares rose about one percent in premarket trading after the chipmaker delivered a stronger-than-expected outlook, while most other “Magnificent Seven” technology stocks moved lower.
The AI semiconductor company projected fiscal first-quarter revenue of about $78 billion, plus or minus two percent, indicating continued demand tied to artificial intelligence infrastructure despite ongoing geopolitical and regional sales constraints. Nvidia also said it does not expect revenue contributions from China during the period.
Elsewhere, major technology peers traded modestly lower, including Amazon (NASDAQ:AMZN), Tesla (NASDAQ:TSLA), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT), as investors assessed earnings updates alongside rising capital spending commitments tied to AI expansion.
Several companies outlined elevated investment plans for 2026. Amazon expects capital expenditures of roughly $200 billion focused on artificial intelligence, robotics and cloud infrastructure, while Alphabet guided for $175 billion to $185 billion in spending aimed at accelerating AI development. Meta forecast annual capital expenditures between $115 billion and $135 billion to support computing infrastructure.
Market participants now appear focused on whether sustained AI-driven revenue growth across large-cap technology firms can offset mounting investment costs and support valuations across the sector.
