AI infrastructure

Nvidia CEO Jensen Huang revealed a $500 billion order backlog for AI chips spanning 2025-2026, following significant revenue growth. Analysts believe this indicates higher-than-expected revenue in 2026. Despite this, Nvidia’s stock remains below its value from late October. Analysts are closely watching Nvidia’s third-quarter earnings and forward guidance, along with details on partnerships, including a potential $10 billion investment in OpenAI. Competition from custom silicon and sales to China are also key areas of scrutiny.

AI market optimism is wavering amid concerns of a bubble and unsustainable valuations fueled by debt-financed expansions. Replit CEO Amjad Masad notes a cooling hype, citing initial disillusionment with early AI coding tools and a slowdown in revenue growth for some companies. Contrarily, Credo AI CEO Navrina Singh remains bullish, seeing AI as a fundamental growth driver necessitating investments in governance, infrastructure and responsible implementation for long term success. The market is maturing beyond hype to focus on strategic integration and risk mitigation.

Key topics include the end of the U.S. government shutdown with a short-term funding bill, but setting up future budget clashes. Disney’s Q4 results missed revenue estimates amidst streaming competition. The Supreme Court will hear arguments on Trump’s attempt to fire a Federal Reserve Governor. Concerns are rising about the legality and safety of alternative funding programs for prescription drugs. Anthropic plans a $50 billion investment in AI infrastructure, facing political backlash over energy costs. New Epstein documents referencing Trump were released.

New data center projects in Texas and New York will receive $50 billion to boost U.S. AI computing capabilities, supporting Anthropic’s AI systems and creating jobs. Developed with Fluidstack, the facilities prioritize efficiency and power consumption. This investment reflects a trend of reshoring compute amid growing AI workload demands and government initiatives. Anthropic’s expansion aligns with OpenAI’s, raising questions about infrastructure capacity. The projects highlight the strategic importance of domestic AI infrastructure and the evolving economics of AI development.

Cisco (CSCO) shares jumped after reporting strong Q1 2026 results, exceeding revenue and EPS expectations. Revenue grew 8% year-over-year to $14.88 billion, driven by double-digit order growth fueled by AI-related demand. Cisco highlighted a “deepening” relationship with clients and a campus networking refresh cycle. While security revenue declined, the company projects strong Q2 2026 revenue of $15-$15.2 billion. Cisco is benefiting from the AI infrastructure boom with significant orders from hyperscalers, positioning itself as an AI play with improving subscription revenue.

Wall Street saw mixed trading amid optimism about avoiding a government shutdown. The Dow hit a record high, while tech stocks pressured the S&P 500 and Nasdaq. Anthropic announced a $50 billion AI infrastructure investment, including data centers in New York and Texas. JPMorgan Chase forecasts $5 trillion in global AI infrastructure investment by 2030. TD Cowen raised Broadcom’s price target, citing increased AI spending, but acknowledges high expectations are already priced in. The focus shifts to future revenue expectations after the earnings call.

Cisco reported strong Q1 2025 results, exceeding expectations for both revenue ($14.88B) and EPS ($1 adjusted). Overall revenue grew 8% YoY, driven by a 15% surge in the networking segment. AI infrastructure orders reached $1.3 billion, highlighting Cisco’s strategic positioning. While security and collaboration segments saw declines, Cisco anticipates robust Q2 revenue ($15-$15.2B) and raised its full-year outlook, driven by AI and networking demand. Cisco shares are up 25% year-to-date.

Anthropic is investing $50 billion to build AI infrastructure in the U.S., starting with data centers in Texas and New York in partnership with Fluidstack. This includes 800 permanent and 2,000 construction jobs. The move emphasizes U.S.-based AI capabilities amid rising competition. Anthropic aims for profitability by 2028, leveraging custom facilities and partnerships with Amazon and Google for compute resources. Questions remain regarding energy demands, potential AI bubble risks, and government involvement in AI infrastructure funding.

CoreWeave (CRWV) shares plummeted 13% after CEO Mike Intrator cited data center delays impacting its full-year projections. While Intrator portrayed the issue as isolated, CNBC’s Jim Cramer suggested broader problems, potentially tied to Core Scientific (CORZ), whose shares also fell 7%. CoreWeave revised its 2025 revenue forecast downwards despite a strong third-quarter revenue growth of 134%. The market reacted to the ambiguity surrounding the delays’ extent and their potential impact on CoreWeave’s ability to fulfill major AI infrastructure contracts with companies like Meta and OpenAI.

CoreWeave, an AI-focused cloud provider, reported strong Q3 earnings, exceeding revenue expectations with $1.36 billion, a 134% year-over-year increase. While reporting a net loss, it was significantly improved compared to the previous year. The company boasts a $55.6 billion contracted backlog and secured major partnerships with OpenAI and Meta. Since its March IPO, the stock has risen 164%. However, a proposed acquisition of Core Scientific was rejected. Investors are watching for updates on capacity expansion and profitability strategies.