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in General Factchecking by (180 points)

(That is also now coming into question. Recent reports have reiterated a Wells Fargo analyst note saying that Amazon Web Services (AWS) has delayed prior plans for new data center leases. Microsoft, another large cloud infrastructure provider, has made similar decisions to slow data center expansion, according to the analysts.

That comes after plans to aggressively expand cloud infrastructure capacity with hundreds of billions of dollars in capital spending for Nvidia's GPU hardware had been announced by several companies. Others, including xAI and Meta, appear to be continuing with growth plans.

Amazon CEO Andy Jassy had previously told CNBC that he didn't expect to cut back on capital spending for data center compute capacity. That's why investors need to mark May 1 on their calendars. Amazon is scheduled to report its first-quarter earnings on that date. Microsoft will be providing its quarterly update the day prior.) - Smith, NASDAQ 25'

After a major projected downturn to happen in early May, concerns began to rise about NVIDIA’s future growth especially as major cloud providers like Amazon and Microsoft signaled they might slow their data center expansions. A Wells Fargo analyst noted that Amazon Web Services (AWS) delayed some new data center leases and Microsoft made similar moves to pause expansion. This was significant because earlier plans had promised massive capital spending on NVIDIA’s GPU hardware for AI development. However, companies like xAI and Meta are still moving forward with their infrastructure growth, keeping demand for NVIDIA’s products alive, reminding investors to pay close attention to the earnings reports around May 1st. These financial updates were seen as strong indicators of whether the AI boom would continue fueling NVIDIA’s rebound. Many investors remain optimistic that even with short-term pullbacks, the broader push for AI adoption will reignite growth across the tech market. If the AI boom stays strong, it could spark a major rebound in tech stocks, with NVIDIA positioned as a key leader in the next wave of innovation and market expansion.

3 Answers

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ago by Newbie (300 points)

Hi! You seem to have factchecked this yourself, as you’ve gone straight to the source. However, the word “might” is a big deal here. Stocks are never set in stone, so the article saying Nvidia “will” soar is a possible overreaction. While Nvidia has been down for a couple months now due to the U.S. government’s relative mishandling of the economy as well as tariffs placed on nearly every country, it’s very possible it can go back up if the state of the economy is viewed as the new norm by the general public. I’ll put a link to CNN Business, where I scout for stocks.

https://www.cnn.com/markets/stocks/NVDA

https://www.cnn.com/2025/04/29/investing/us-stock-market/index.html

Exaggerated/ Misleading
ago by Newbie (340 points)
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I agree that the claim is exaggerated as stock prices are never a sure thing, however the information presented could boast well for NVIDIA. The economy is facing some shock due to the recent tariffs and could create the stock price to go down even further. There are still many uses for the products created by NVIDIA and should be able to build it back up however.
ago by Newbie (290 points)
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I agree in your uncertainty to call this true but it is still for the most part accurate. While stocks are realistically always up in the air, I like how you did not completely rule out the possibility of a potential rise, you stated how this was likely not the case. In cases where it is more likely true but not completely ruled out, I appreciate the effort to give some creditability to both possibilities.
ago by Apprentice (1.5k points)
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I thought this was a really thoughtful comment! I thought that since you pointed out the significance of the word "might" vs "will" added a lot more explanation to the uncertainty of the claim. I agree that the stock market is very uncertain and predicting a definite surge is a very strong claim. I also thought that connecting Nvidia's recent dip to broader economic factors and tariffs adds really valuable context! Well done!
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ago by Novice (750 points)
Concerns arose about NVIDIA's growth after a Wells Fargo analyst noted potential data center lease delays by major cloud providers like Amazon and Microsoft, despite earlier plans for significant GPU hardware investments. This sparked investor focus on upcoming earnings reports around May 1st as key indicators of continued AI-driven demand for NVIDIA. However, companies like xAI and Meta are reportedly still expanding, suggesting ongoing demand. Attributing NVIDIA's entire future to these short-term reports is an oversimplification, as they serve diverse markets and the long-term AI trend remains strong. While important, these earnings are just one factor influencing NVIDIA's trajectory and the broader tech market's potential rebound. Investors should consider the wider landscape beyond a single analyst's observation.
Exaggerated/ Misleading
ago by Innovator (57.5k points)
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What are your sources? Where did you find your information? Please cite in-text (example: According to The New York Times, NVIDIA's stock...") and include source links. Thanks!
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ago by Novice (720 points)

You did a great job breaking down a complex financial situation and presenting it in a clear and engaging way. I especially liked how you explained the connection between data center expansion, GPU demand, and NVIDIA’s potential stock movement—it made the analysis easy to follow even for readers who aren’t stock market experts. The mention of specific companies like AWS, Microsoft, xAI, and Meta helped support your points with real-world context. Also, highlighting the importance of upcoming earnings reports was a smart move—it shows you’re thinking critically about future developments.

True

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