The stock price of Nvidia has fallen about 2 % since the beginning of the year to 17 February 2026, and has a trading price of around $182.81 and market capitalization of $4.5 trillion. S and P 500 index has increased almost stagnantly with a slight depreciation of 0.14 %.
This is the case with the artificial-intelligence (AI) semiconductor giant even considering its strong financial performance in the third quarter, where it posted revenue of $57 billion-year-year-ago, and is expected to achieve revenue of $65 billion in the fourth quarter. The players in the market are looking forward to how tricky the situation might become behind the current rosy disposition.
AI Spending Rampage creates Anxieties
Combined with the interest of the large tech conglomerates in AI, these investments lead to the expansion of Nvidia and inspire a sense of sustainability worries. Amazon has projected its future capital investment of 2026 as $200 billion, but Alphabet has projected its own expenditure to go up to $175-$185 billion.
A significant impediment today is the cost of AI chips.
said Amazon CEO Andy Jassy in the company’s fourth-quarter earnings call.
Customers are starving for better price performance and typically and understandably, the dominant early leaders aren’t in a hurry to make that happen. They have other priorities. It’s why we built our own custom silicon in training and it’s really taken off.
Despite the long-term rises in the sales of Nvidia that such extensive outlays can cause, analysts are worried about the cash burn among the hyperscalers.
Valuation Squeeze Tightens
Nvidia is a premium trader with a forward price-to-earnings ratio of 26 and trailing or 45 that would not last long in case of major risks arising. The Bank of America has also identified it as a top AI equity after the release of CES Vera Rubin platform though there are still macroeconomic uncertainties including the devaluation of GPUs.
In perspective, the technological leadership and the estimated fourth-quarter income in the tune of $65 billion that Nvidia possesses is likely to carry on with strength; but an upsurge in capital-expenditure commitments and competition innovation is likely to eat into the majority of their profits. Advanced investors view the asset as a possible dip-buy, depending on the continued demand of AI, and suggest keeping track of the Q4 earnings report to know more.
