NVIDIA Stock Has Gas in the Tank Amid Mag 7’s $650B+ Capex Surge

1 hour ago 1

Joey Frenette

Thu, March 26, 2026 astatine 9:29 AM CDT 5 min read

Nvidia boasts unprecedented 75% gross margins arsenic the “picks and shovels” AI play benefiting from hyperscaler GPU orders, portion Microsoft and Alphabet show aboriginal occurrence with unreality maturation rates reaching 48% for Google Cloud connected the backmost of AI-driven compute demand.
The Magnificent Seven are deploying astir $650 cardinal successful CapEx this twelvemonth connected AI infrastructure and development, with hyperscalers similar Amazon, Alphabet, and Microsoft showing aboriginal signs that dense spending is translating into worldly unreality gross growth, though the marketplace remains skeptical astir proportional returns connected specified monolithic superior deployment.
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Collectively, the Magnificent Seven companies are spending colossal sums of wealth connected CapEx arsenic they look to plaything for the fences connected AI. With CapEx successful the ballpark of $650 cardinal for this year, it surely feels similar there's a "capital war" of sorts that mightiness bring distant the request to war-time CEOs. Undoubtedly, immoderate of the brightest minds successful tech are each reasoning it's champion to level it with CapEx, overmuch of which volition beryllium invested successful AI improvement and infrastructure.

From Amazon (NASDAQ:AMZN) and its $200 cardinal 2026 CapEx (Alexa is bound to get a full batch smarter) oregon Alphabet (NASDAQ:GOOGL) and its $175-185 cardinal CapEx budget, which whitethorn precise good unafraid its AI lead, to Nvidia (NASDAQ:NVDA) and Apple (NASDAQ:AAPL), which isn't spending arsenic overmuch but inactive basal to summation from the expenditures of the large hyperscalers, large things look to beryllium up for the Mag Seven, adjacent arsenic the radical look to tally retired of rally fuel.

Undoubtedly, it's wiser to beryllium skeptical than outright bullish erstwhile looking astatine the sheer magnitude of the spend. Either way, Nvidia and Apple surely basal retired arsenic the large winners that scope caller heights connected the shoulders of others.

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Whether it's the hyperscalers and their large GPU orders for Vera Rubin oregon Apple's concern with Google to usage Gemini arsenic a portion of its AI, the CapEx-light names whitethorn precise good beryllium capable to person an easier clip hitting high-ROI expectations enactment successful spot by investors. That's not to accidental the biggest (and hardest-hit) spenders won't yet commencement winning big.

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