Nvidia (NASDAQ: NVDA) reported a 73% year-over-year increase in data center sales, reaching $39 billion, which constitutes 88% of its total business. According to analysts, the company’s revenue could hit $200 billion this fiscal year, driven by demand for its new Blackwell chips. By 2029, data center operators are projected to spend $1 trillion annually on infrastructure, impacting Nvidia’s growth.
Alphabet (NASDAQ: GOOG, GOOGL) saw a 12% increase in revenue year-over-year in Q1, with its Google Cloud revenue growing 28%, contributing to an operating income of $2.2 billion. Despite concerns over competition from other AI developers, Alphabet’s investments in AI, which amounted to $57 billion in capital expenditures, and $75 billion in free cash flow, position it strongly for future growth. The stock is currently trading at 19 times earnings estimates for 2025.
