NVDA Underperforms as AI Capital Expenditure Surge Falters Revenue Outlook

NVDA-US shares trade in a range as major AI-capital-expenditure boosters fail to translate spending into renewed gains. The stock has declined about 1% since late last year, lagging the S&P 500, and closed Friday at $184.33, down 1.39% after a intraday dip of 2.6%. Enterprise spending on AI infrastructure is estimated to reach over $600 billion in 2026, yet investors question whether this will generate commensurate revenue and profit growth. Advisors Capital Management’s JoAnne Feeney highlights concerns that continued expansion may accelerate market saturation, while cyclical dynamics in semiconductors suggest growth will放缓: revenue guidance implies a 58% rise in 2026, down to 28% in 2027. The company’s P/E of about 24x is in line with the Nasdaq 100 and above the S&P 500, but below its 5-year average of 38x. The next critical test comes on February 25 with the earnings report. Analysts closely watch guidance on data center chip demand and the outlook, as hyperscalers continue to be a key driver of NVIDIA’s sales. While a bearish expenditure growth trajectory could benefit “hardware” issuers, current valuations and profit expectations remain sticky, with the market awaiting clearer signals from the company.