(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.