Amazon, Alphabet, Microsoft, and Meta Platforms are on track to spend roughly $745 billion on capital expenditures this year, mostly on data center infrastructure. Nvidia, Broadcom, and Arista Networks supply the chips, custom silicon, and networking that power these data centers. Nvidia’s revenue in the second quarter of fiscal 2027 more than doubled to $96 billion, with non-hyperscaler revenue up 138% to $40 billion, and the stock trades at a forward P/E of about 14. Broadcom’s AI chip revenue rose 221% in the fiscal third quarter of 2026, and CEO Hock Tan expects AI revenue to reach $230 billion by fiscal 2028, with a forward P/E of about 18. Arista’s quarterly revenue surpassed $3 billion, up 38%, with full-year guidance of $12.6 billion, but its forward P/E of about 38 is higher than Nvidia’s and Broadcom’s.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Related tickers and likely impact
NVDA
▲ Likely positiveNvidia
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/14/2026 | 221.30 |
| Change that session | -3.16% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- NVIDIA's Price Implies Less Growth Than Its History
- Amazon Just Made Its AI Chips Easier to Use. Should Nvidia Investors Be Worried?
Amazon announced TorchNeuron, a free open-source tool that lets developers run existing PyTorch code on its Trainium chips with minimal changes, with a public beta due on Oct. 20. This challenges a key part of Nvidia's moat, because switching away from CUDA typically carries large costs in time and labor. However, the tool only covers PyTorch work, custom CUDA code will not port easily, and the release is still in beta, with the ease-of-switching claims coming from Amazon itself. Google is also developing a similar tool, TorchTPU. The author sees it as a chink in Nvidia's narrative and does not expect a major near-term effect on order flow or pricing power, but says the market may no longer pay quite the same premium for Nvidia stock.
- S & P 500 , Nasdaq rise as AI stocks rebound and oil prices ease ahead of major US company earnings this week
The S&P 500 and Nasdaq Composite rose on Monday as AI-related stocks rebounded from the prior week's sharp fall, when both indexes posted their biggest weekly declines since late June. Investors had worried that higher interest rates could make funding AI infrastructure and data centers more expensive, and lower oil prices, with Brent near $108 a barrel after a 1.3% drop, added support. Chip stocks recovered, with Broadcom up 2.2%, Micron up 4.3% and the Philadelphia Semiconductor Index on track to end an eight-day losing streak. Goldman Sachs upgraded CoreWeave to “buy”, though the stock had fallen more than 25% the prior week amid concerns about its $50 billion debt load. Investors are now focused on earnings from Meta and Tesla on Wednesday and SpaceX on Tuesday.
- Goldman Sachs revises rating and target on beaten-down AI stock
- Microsoft Walks Away From AI Data Center Deal, but SemiAnalysis Predicts 50-GW Boom in 2027
According to new research from SemiAnalysis, more than 24 gigawatts of data center capacity is already in advanced construction across 40 campuses, most of it expected to come online in 2027. The research firm forecasts 50 gigawatts of new capacity.
- DeepSeek teams up with Huawei to challenge Nvidia
DeepSeek is working with Huawei Technologies to design AI chips tailored to its models, with Huawei engineers stationed at its offices to incorporate feedback. DeepSeek plans to use Huawei's Ascend 950DT chips for model training as soon as the end of 2026, and Huawei plans to prioritize DeepSeek for most of its Ascend 960DT chips expected in the first quarter of 2027. According to Epoch AI, Nvidia's B300 delivers roughly seven times the raw arithmetic performance of Huawei's Ascend 950, and training a frontier model could require more than 10,000 Huawei chips working together for weeks. DeepSeek is also using the open-source TileLang to reduce reliance on Nvidia's CUDA ecosystem, while still seeking access to Nvidia's advanced processors. If the collaboration succeeds, it could offer a blueprint for other AI developers and a major step in reducing China's dependence on US technology.
Related markets
Latest news
- Amazon (AMZN) Stock Costs $250 a Share. Here's Why I'd Still Buy It.
The article argues that Amazon, trading at about $250 a share, is still worth buying for the author, who would buy it if he did not already own it. The main reason is that the stock looks appealingly valued: its forward P/E of about 24 is well below its five-year average of 39, while its price-to-sales ratio of 3.6 is slightly above the five-year average of 3. Amazon ranked fourth in the 2026 Kantar BrandZ Global Top 100, with a brand value of $1 trillion, and its shares have averaged annual gains of 22% over the past 15 years. The author stresses that a stock's absolute price means little on its own, so investors should compare it with earnings and sales and research each company in depth.
- Cisco Systems (CSCO) Unveiled 102.4T AI Networking Platforms
Cisco Systems unveiled new AI networking platforms built on Silicon One P200, G300 and G302 switching chips, with 51.2T and 102.4T systems. It also introduced 1.6T optical modules and integrated liquid cooling aimed at high-density AI data centers, and disclosed a collaboration with NVIDIA, TE Connectivity and Amphenol to co-develop a 400Gb/s per lane USFP optical module and open specification. The company has a market cap of US$423.4b. The article says the launch supports Cisco's position as an AI networking provider competing with Arista and Juniper, but the richer hardware mix adds to margin pressure that has already contributed to non-GAAP gross margin compression.
- J.P. Morgan Stays Top of Extel’s All-America Equities Research Table
Extel's 55th annual All-America Research Team survey ranks J.P. Morgan first in the research team table with 47 published positions, followed by BofA Securities with 44 and Morgan Stanley with 43. UBS posted the largest gain in positions, reaching 42 and climbing to fourth place. In the analyst leaders table, Jefferies takes first place with 43 positions, while UBS leads Extel's weighted ranking of research teams ahead of J.P. Morgan and Evercore ISI. The results reflect the views of 4,451 portfolio managers and analysts at 1,608 institutions across 60 sectors, with 129,919 votes counted. The number of participating institutions fell from 1,705 in 2025, but more firms now sit in the highest commission bands, rising to 89 from 82.
- Visa, Mesh partner to enable crypto spending at 175M merchant locations
Visa and crypto payments network Mesh have partnered so users can spend cryptocurrency and stablecoin balances directly from participating digital wallets at merchants on Visa's network, without transferring funds to a bank account or using a separate crypto card. Merchants receive payments through Visa's existing network without changing their checkout systems. The network covers more than 175 million merchant locations in over 200 countries and territories, and participating wallets and launch dates will be announced later. Mesh will handle funding and conversion between crypto, stablecoins and fiat, as well as onboarding and KYC requirements. The partnership follows Mesh's September integration with Bybit Pay and its $75 million raise in January at a $1 billion valuation.
- Top 3 Founder Led Stocks To Watch In October 2026
The article presents three founder-led stocks from a screen: monday.com, Palantir Technologies and Figure Technology Solutions. monday.com has revenue of about US$1.37b and a market cap of US$3.8b. Palantir earns US$3.21b from Government customers and US$2.95b from Commercial clients, with a market cap of US$447.04b. Figure Technology Solutions reports US$619 million of revenue and a market cap of US$6.1b. The article argues that founder ownership can align leadership with long-term shareholder interests, but each stock depends on key assumptions to watch, such as customer expansion, pricing power or the pace of blockchain adoption. The full screen surfaced 26 more businesses with similarly strong founder ownership.
- Mastercard Brings Its Fraud-Fighting Tools to Stablecoin Payments
Mastercard has launched Stablecoin Security, a tool that lets financial institutions screen stablecoin payments for fraud, scams and sanctions exposure and generate a risk score before a payment settles. Delivered through a platform-agnostic API, it combines Mastercard's payment intelligence with blockchain analytics and launches with Borderless.xyz and Keyrails as initial participants. The move addresses a blind spot flagged by a Bank for International Settlements study, which found nearly 60% of 593 million stablecoin transfers in 2025 were complex, multi-step transactions. The product extends Mastercard's broader stablecoin push, including its Global Money Platform with BVNK, and will launch first in North America, with worldwide availability expected in 2027.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.