Microsoft, Alphabet, and Meta Just Handed Nvidia Shareholders a Golden Ticket – Here’s Why

Tech titans are doubling down on AI—and Nvidia’s chips are cashing in.

When the biggest players in tech start throwing cash at AI infrastructure, you know who’s really winning: the arms dealer. Microsoft, Alphabet, and Meta just dropped billions on AI capex—and every dollar flows straight to Nvidia’s bottom line.

Wall Street analysts are already salivating over the next earnings call. Meanwhile, retail investors are left playing catch-up—as usual.

Image source: Getty Images.

The AI hyperscalers are still rapidly building data centers

Nvidia's business revolves around selling its graphics processing units (GPUs) and other supporting hardware and software. While GPUs are used in multiple applications, the largest demand by far comes from data centers being built to handle the demand for artificial intelligence (AI). Companies competing in the AI arms race are scrambling to ensure they have enough computing power to handle the workloads and are rapidly building data centers to meet it.

Some of the biggest spenders in this area are,, and. All three of these companies have already reported Q2 results and given bullish commentary regarding data center capital expenditures.

Starting with Microsoft, they stated that capital expenditure growth won't be as rapid as it was in fiscal year 2025 (ending June 30), but will still increase for fiscal year 2026.

Alphabet is probably displaying the most aggressive spending behavior of the three, raising its 2025 capital expenditure guidance from $75 billion to $85 billion. While they didn't give details on 2026's capex plans, they mentioned they will further increase this figure to meet customer demand.

Lastly, Meta Platforms' capital expenditures are expected to rise $30 billion year over year, with 2025's total expected to be between $66 billion and $72 billion, indicating that its capital expenditures have nearly doubled year over year. For 2026, Meta's management stated, "We currently expect another year of similarly significant capital expenditures dollar growth in 2026 as we continue aggressively pursuing opportunities to bring additional capacity online to meet the needs of our artificial intelligence efforts and business operations."

With strong guidance appearing for 2026, Nvidia will likely experience an additional year of strong growth as it receives a large chunk of that spend.

However, Nvidia also has a growth lever up its sleeve.

Nvidia expects China sales to bolster its revenue growth rate moving forward

In April, Nvidia's China export license was revoked. This crippled sales of its H20 chip, which was specifically designed to meet export regulations. However, Nvidia has reapplied for an export license with assurances from the U.S. government that it will be approved. This is huge news and opens another growth avenue for Nvidia.

For Q2 of fiscal year 2025 (ended July 27), Nvidia expects 50% revenue growth. However, management estimated that H20 chips WOULD have added around $8 billion in sales during Q2 if their export license hadn't been revoked. If nothing had happened, Nvidia's sales would have been estimated to rise 77% year over year.

With H20 chip sales likely returning in Q3, this will also bolster Nvidia's growth rate for the next year.

Nvidia has several strong tailwinds blowing in its favor that will push its revenue higher. So, if you're worried about Nvidia's growth slowing, I wouldn't be, as all signs point toward Nvidia's growth remaining strong for at least another couple of years.