Alphabet and Amazon increase 2026-2027 capex budgets, fueling demand for Nvidia and other AI infrastructure stocks.
Nvidia (NASDAQ: NVDA) remains a top beneficiary of surging AI infrastructure spending as Alphabet and Amazon raise 2026-2027 capital expenditure budgets. The stock trades at a forward P/E of 16x fiscal 2028 estimates, well below recent highs.
Earlier concerns about a slowdown in AI capex have faded, with Nvidia’s GPUs dominating AI model training and its CUDA software providing a competitive edge. The company’s networking and data processing units are also gaining traction as chip cluster sizes expand.
Nvidia’s expansion into CPUs and DPUs further strengthens its position in end-to-end AI server solutions, supporting long-term growth.