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Key Points
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Big cloud companies are raising their capital expenditure (capex) forecasts.
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Microsoft reported that demand for Azure is still outpacing supply.
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Nvidia is expected to report strong Q2 earnings at the end of August.
Nvidia (NASDAQ: NVDA) is anticipated to report another robust financial performance by the end of August, following a significant recovery from a previous decline in April. The company’s market cap has approached $4 trillion, and strong earnings from its major customers indicate ongoing demand for its products. Notably, Alphabet has increased its capex forecast from $75 billion to $85 billion, while Microsoft plans to spend a record $30 billion this quarter, reflecting a 39% growth in Azure’s infrastructure business year-over-year.
Microsoft’s CFO noted that demand for Azure remains higher than supply, a trend expected to continue into the first half of the fiscal year. This situation indicates a likely increase in Nvidia’s GPU sales, essential for supporting cloud services and artificial intelligence (AI) workloads. Analysts predict Nvidia’s revenue for Q2 could reach $45.7 billion, marking a 52% increase.
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