Nvidia Faces Skeptical Investors Amid $700 Billion AI Spending Boom
Nvidia is set to report its fiscal second-quarter 2027 results after the market closes on August 26. The stock has been trading near $212, which is about 10.89% below its 52-week high of $236.54 reached in May.
Analysts forecast revenue of $91.9 billion and earnings per share of $2.08, implying year-over-year growth of roughly 97%. This growth has raised concerns about the sustainability of massive investments in advanced chips and data centers by companies like Amazon, Microsoft, Alphabet, and Meta, who are projected to spend more than $700 billion collectively on AI data-center infrastructure this year.
Nvidia's shares have gained 11.8% so far this year but have underperformed major rivals. The company has been investing billions of dollars back into the AI ecosystem, raising concerns about its involvement in circular deals that could artificially boost demand and obscure broader economic signals.