Nvidia (NASDAQ: NVDA) is poised for another year of growth, driven by increasing capital expenditures from major clients in the data center sector, including Microsoft, Alphabet, and Meta Platforms, which have reported bullish forecasts. Microsoft expects slower but continued growth in capital expenditures for fiscal year 2026, while Alphabet has raised its 2025 guidance from $75 billion to $85 billion, indicating aggressive spending. Meta anticipates a year-over-year increase of $30 billion in capital expenditures, projecting a total between $66 billion and $72 billion for 2025.
Nvidia also expects a boost from its renewed export license for its H20 chip, which it estimates could have contributed $8 billion in sales for Q2. With projected revenue growth of 50% for fiscal Q2 2025, Nvidia’s sales could have increased by 77% had it not been for the license issue. The company anticipates that sales from the H20 chips will return in Q3, further enhancing its growth prospects.
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