New York, Feb 6, 2026, 09:41 EST — Regular session
Nvidia shares dropped roughly 1.2% to $171.88 early Friday, lagging behind a mixed chip sector amid a tech selloff fueled by concerns over the expense of artificial intelligence development.
This move is significant since Nvidia is at the heart of the AI expansion — and investors want a clearer answer: is the jump in data-center spending going to translate into immediate revenue and profit, or just heftier expenses?
The shift in sentiment has intensified after Microsoft, Alphabet, and Amazon unveiled new capital expenditure plans—capex being the funds companies allocate to data centers, servers, and chips. Kristina Hooper, chief market strategist at Man Group, told Reuters that a “greater discernment” is emerging, with markets now “punishing” the top AI investors. 1
Amazon’s spending has sparked fresh debate. Reuters reported the company’s 2026 capex could hit $200 billion—far above what most expected, according to MoffettNathanson analysts who called the scale “materially greater than consensus expected.” After the stock dipped in premarket trading, CEO Andy Jassy highlighted AWS growth comparisons during the post-earnings call. 2
The longer-term outlook for chip demand remains robust. The Semiconductor Industry Association forecasts global semiconductor sales will reach $1 trillion this year, following a 25.6% jump to $791.7 billion in 2025. Advanced computing chips—those produced by Nvidia and its rivals—make up the largest chunk. “My orders are completely full,” SIA CEO John Neuffer told Reuters. 3
It’s been a tough tape. Nvidia dropped 1.4% on Thursday as the Nasdaq fell to its lowest level since November. The slide came after Alphabet revealed its 2026 capex could reach $185 billion, stoking doubts over near-term AI returns. “We’re seeing this volatility about whether this investment will translate… into results,” said Tom Hainlin, an investment strategist at U.S. Bank Wealth Management. 4
Chipmakers showed mixed moves early Friday. AMD dropped roughly 3.9%, Intel slipped 0.6%, but Broadcom and Taiwan Semiconductor pushed up.
It’s not just chipmakers feeling the heat. Neil Wilson, Saxo UK’s investor strategist, flagged “fresh AI bubble fears” after big tech raised capex targets to about $650 billion. Hargreaves Lansdown analyst Aarin Chiekrie added that cloud growth “hasn’t been enough” to offset concerns over “ballooning” investment plans. 5
Wistron chairman Simon Lin, whose firm supplies Nvidia, dismissed claims that AI is a bubble, telling reporters orders look strong through 2027. The company’s CEO also confirmed that volume production at new U.S. plants is set to kick off in the first half of this year. 6
Risks are creeping up quietly. Several of Nvidia’s top clients are now designing their own chips, and Amazon claims its Trainium processors deliver “30–40% better price performance” compared to Nvidia’s GPUs, according to Barron’s — a sharp reminder that the AI race isn’t one-sided. 7
Nvidia plans to release its fourth-quarter and fiscal 2026 earnings on Feb. 25, with a conference call scheduled the same day. Investors will be watching closely for clues on data-center demand, profit margins, and whether the AI spending boom is sustainable. 8
