New York, Feb 5, 2026, 16:16 EST — After-hours
- After a choppy day, Nvidia shares slipped roughly 1.2% in after-hours trading.
- Amazon forecasted roughly $200 billion in capital expenditures for 2026, edging past Alphabet’s target of as much as $185 billion.
- Traders are focused on the details of U.S. export licenses for China, alongside Nvidia’s earnings report due February 25.
Shares of NVIDIA Corporation slipped roughly 1.2% to $171.84 in after-hours trading Thursday, adding to a volatile week for AI-focused megacaps. Investors weighed new Big Tech spending announcements alongside their costs.
This move is significant since Nvidia has turned into a go-to play for the AI expansion. Whenever clients mention expanding their data-center budgets, Nvidia usually stands out as a primary winner.
The tape has grown sensitive. Investors are cutting to the chase: if spending keeps rising, when will the returns materialize—and who will benefit?
Amazon.com shook markets after hours by forecasting roughly $200 billion in capital expenditures through 2026, covering investments in processors, data centers, and networking equipment. The stock dropped nearly 8% in extended trading following a first-quarter operating income forecast that came in below expectations. The move underscores how ramping up investments can weigh on profits in the short term.
Alphabet paved the way a day earlier by projecting capital expenditures between $175 billion and $185 billion for 2026, a sharp jump from $91.45 billion planned for 2025. CEO Sundar Pichai told analysts, “We are seeing our AI investments and infrastructure drive revenue and growth across the board.” Reuters
Wall Street tumbled sharply Thursday morning amid renewed doubts over AI’s payoff, hitting both hardware and software stocks. “We’re seeing this volatility about whether this investment will translate, ultimately, into results,” said Tom Hainlin, an investment strategist at U.S. Bank Wealth Management. Reuters
Nvidia found itself caught up in software sector jitters this week. At an AI conference hosted by Cisco Systems in San Francisco on Wednesday, CEO Jensen Huang dismissed fears that AI will render software tools obsolete, calling the notion “illogical.” Reuters
On the corporate side, Nvidia is close to sealing a deal to invest about $20 billion in OpenAI, according to a source familiar with the discussions who spoke to Reuters. The agreement isn’t finalized yet. OpenAI aims to raise as much as $100 billion, with a valuation near $830 billion, the insider added.
China remains a major sticking point. The Trump administration has signaled it might let ByteDance purchase Nvidia’s H200 chips, but Nvidia hasn’t accepted the proposed terms yet. These include “know-your-customer” rules aimed at keeping the chips out of China’s military, according to someone familiar with the situation. Nvidia described itself as a middleman and said the “conditions need to be commercially practical.” Reuters
The Financial Times has reported that sales of the H200 chip to China are stalled, awaiting a U.S. national security review. Chinese buyers are reportedly holding back on orders until the licensing terms are clarified. Reuters has not been able to independently confirm the story.
Rival firms are weighing on sentiment. Advanced Micro Devices projected revenue around $9.8 billion, plus or minus $300 million, for the current quarter, down from $10.27 billion in Q4. Shares dropped 8% in after-hours trading earlier this week. “The expectations for large blowout quarters for AI-related hardware companies have skewed what the market is looking for,” said Bob O’Donnell, president of TECHnalysis Research. Reuters
Nvidia’s risk is clear-cut: if hyperscalers continue spending but demand clearer proof of returns, budgets could shift quickly. Export rules add complexity — delayed licenses or stricter conditions might shift revenue timing, while competitors are eager to seize any openings customers provide.
Traders are now focused on Nvidia’s upcoming report for the fourth quarter of fiscal 2026, set for Feb. 25. Investors will be watching closely for any changes in demand trends and updates on licensing developments in China.
