Nvidia CEO Jensen Huang speaks at a dinner event with the company’s Taiwanese suppliers in Taipei, Taiwan, Saturday, January 31, 2026.
Yifei Lin | Bloomberg | Getty Images
Nvidia reported explosive profits on Wednesday and issued better-than-expected forecasts indicating accelerated growth. CEO Jensen Huang declared that “computing demand is rapidly increasing.”
Investors’ concerns seem to lie elsewhere.
Stocks fell for the second day in a row on Friday, down about 7% for the week, their biggest decline since November. The exit puts Nvidia’s stock price down for the year, joining the ranks of other tech giants.
One of the broader concerns in the market is that the tech giant’s capital spending will soon peak, meaning Nvidia’s growth rate could slow dramatically in the coming quarters and years. Another issue for investors is competition. Companies that buy large quantities of chips for AI are starting to show interest in alternatives to Nvidia’s graphics processing units (GPUs).
On Friday, OpenAI announced that it has relied heavily on Nvidia GPUs for years to train and run its AI models, consuming the equivalent of 2 gigawatts of power. Amazon Web Services Trainium AI chip capacity. The announcement comes as OpenAI closes a $110 billion funding round, with Amazon contributing $50 billion and Nvidia contributing $30 billion.
“This is the biggest validation yet of Amazon’s custom AI silicon strategy and gives OpenAI a real hedge against Nvidia’s supply constraints and pricing power,” Patrick Moorhead, CEO of Moor Insights and Strategy, wrote in a post about X.
OpenAI last month committed to 750 megawatts of computing power from small AI chip maker Cerebras.
OpenAI still uses Nvidia heavily. The company announced Friday that it will use 5 gigawatts of computing power on Nvidia’s next-generation Vera Rubin GPUs. This sits on top of existing Nvidia GPUs around the world. coreweave, microsoft and oracle cloud.
Nvidia announced Wednesday that its January quarter revenue rose 73% year over year to $68 billion, and is expected to grow 77% this quarter, which would be the fastest expansion rate in a year. However, while growth is expected to be 65% this year, analysts expect the numbers to slow to 30%, 13% and 14% respectively over the next three years.
Meta We are also looking at Nvidia alternatives. on tuesday, advanced micro device The social media company said it will consume up to 6 gigawatts of Instinct GPUs. And on Thursday, The Information reported that Meta had signed a multibillion-dollar deal for its use. Google Tensor processing unit.
broadcomThe company, which makes custom chips for Google, fell about 4% for the week. The company is scheduled to announce first-quarter results on Wednesday.
This week’s decline brings Nvidia down 5% for the year, but some analysts view the decline as a buying opportunity.
“While we do not know when investors will begin to view these AI names in a more positive light, we remain confident that stocks will continue to decline and a reversal will occur at some point,” analysts recommending buying Jefferies’ stock said in a note Wednesday.
—CNBC’s Katie Tarasov and Ari Levy contributed to this report.
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