Nvidia Investors Eye Q2 AWS Growth to Justify $200B Capex Wave
Big tech capex rose 75% from 2024 to 2025 and is set to climb another 75% in 2026, with Amazon spending $200 billion on data centers this year. Nvidia investors will watch Q2 cloud revenue growth—AWS expanding from 24% to near 30%—to verify GPU monetization and justify future chip orders.
1. Capex Surge and Data Center Spending
Capital expenditures by major tech firms jumped 75% from 2024 to 2025 and are forecast to rise another 75% in 2026. Amazon is allocating $200 billion this year alone for new data centers to handle growing AI and cloud workloads.
2. Cloud Revenue Growth Expectations
Analysts expect AWS cloud revenue growth to accelerate from 24% last quarter toward 30% in Q2, while Google Cloud and Microsoft Azure are projected to post mid-20% gains. These figures serve as proof points for successful GPU deployment and monetization.
3. Nvidia’s Role and Investor Implications
Nvidia supplies the GPUs powering these expanded data centers, so investors will scrutinize upcoming cloud figures and margin trends to confirm capex investments are profitable. Accelerating revenue and a stable capex outlook are critical to justify continued chip orders and support Nvidia’s valuation.