Nvidia Reports $46.7B, OpenAI Deals, AMD Q2 Growth

The artificial intelligence sector continues its rapid expansion, with key players like Nvidia demonstrating robust growth and setting ambitious future projections. Nvidia, a leader in AI computing, reported an impressive $46.7 billion in revenue for fiscal 2026 Q2, marking a 56% increase, and anticipates reaching $54 billion in Q3. The company's Q1 FY26 data-center revenue alone surged by 73% to $39.1 billion. Despite OpenAI forging deals with rivals such as Broadcom and Advanced Micro Devices (AMD), Nvidia's management forecasts global data center spending to skyrocket from $600 billion in 2025 to an astounding $3 trillion to $4 trillion by 2030, positioning Nvidia for sustained strong performance, even as its revenue growth is projected to normalize from triple-digits to around 50%. Nvidia is also strategically expanding, partnering with Nokia to introduce its Aerial Radio Network Computer (ARC) for 6G technology in the telecommunications market and collaborating with Vertiv to develop gigawatt-scale reference architectures for AI factory deployments, including the NVIDIA Omniverse DSX Blueprint and Vera Rubin platform. Taiwan Semiconductor Manufacturing (TSMC) remains a pivotal force, manufacturing chips for industry giants like Nvidia, AMD, Broadcom, and Apple. TSMC's new 2nm chip node, offering significant power efficiency, is entering production, and the company reported a 41% year-over-year increase in Q3 revenue, expecting its own revenue to grow by 148% by 2030. Oracle is also making substantial strides in AI infrastructure, with its cloud platform experiencing rapid growth, Q1 revenue up 12% to $15 billion, and cloud infrastructure revenue surging 55% to $3.3 billion. Oracle projects $300 billion in future sales from OpenAI and anticipates 31% annual revenue growth to $225 billion by fiscal 2030. In contrast, AMD faces scrutiny, with its Q2 data center revenue growing only 14% year over year and declining 12% quarter over quarter. While AMD partnered with OpenAI for 6 gigawatts of computing power, this was a smaller deal compared to Nvidia and Broadcom's 10 gigawatt agreements. Investors are closely watching AMD's upcoming Q3 report for signs of improvement in demand and its ROCm software. Beyond these major players, the AI boom is benefiting a diverse range of companies. Monolithic Power Systems reported record revenue growth driven by automotive and AI-powered data centers, though management expressed caution on future demand. Trucking company XPO is leveraging AI to boost productivity and margins, while Celestica Inc. saw its price target raised after strong Q3 earnings, benefiting from diversified revenue streams and the AI surge. Even new ventures like Mercor, an AI recruitment startup, are making headlines, with its 22-year-old cofounders becoming self-made billionaires after a $350 million funding round valued the company at $10 billion, having expanded into data labeling for top AI labs like OpenAI.

Key Takeaways

• Nvidia reported $46.7 billion in revenue for fiscal 2026 Q2, a 56% increase, and expects $54 billion in Q3, maintaining its leadership in AI computing.
• Global data center spending is projected to grow from $600 billion in 2025 to $3 trillion-$4 trillion by 2030, indicating massive AI infrastructure expansion.
• TSMC, a key chip manufacturer for Nvidia, AMD, and Apple, is introducing a new 2nm chip node for improved power efficiency and expects 148% revenue growth by 2030.
• Oracle's cloud infrastructure revenue surged 55% to $3.3 billion in Q1, and the company anticipates $300 billion in future sales from OpenAI.
• Advanced Micro Devices (AMD) partnered with OpenAI for 6 gigawatts of computing power but saw its Q2 data center revenue grow only 14% year over year, lagging behind Nvidia's 73% increase.
• Nvidia is expanding into the telecommunications market through a partnership with Nokia for its Aerial Radio Network Computer (ARC) for 6G technology.
• Nvidia also partnered with Vertiv to develop gigawatt-scale reference architectures for AI factory deployments, including the NVIDIA Omniverse DSX Blueprint and Vera Rubin platform.
• Mercor, an AI recruitment startup, achieved a $10 billion valuation after a $350 million funding round, making its 22-year-old cofounders self-made billionaires.
• Companies like Monolithic Power Systems, XPO, and Celestica are also benefiting from the AI boom, leveraging AI for productivity or experiencing strong demand for their services.
• Nvidia plans to release new Blackwell Ultra and Rubin chips beyond 2027, facing high investor expectations as a $5 trillion company.

Nvidia Poised for Massive AI Growth Through 2030

Nvidia remains a top choice for AI stock due to its leading semiconductor chipsets used in AI computing. The company reported $46.7 billion in revenue for fiscal 2026 Q2, a 56% increase, and expects $54 billion in Q3. Despite new deals between OpenAI and rivals like Broadcom and Advanced Micro Devices, Nvidia's management projects global data center spending to grow from $600 billion in 2025 to $3 trillion to $4 trillion by 2030. This massive growth in AI infrastructure spending positions Nvidia for continued strong performance.

Nvidia Leads AI Computing Market Expects Huge Growth

Nvidia continues to be a leader in AI computing, producing top-tier semiconductor chipsets for AI infrastructure. The company saw a 56% revenue increase to $46.7 billion in fiscal 2026 Q2 and expects $54 billion in Q3. Despite OpenAI making deals with competitors like Broadcom and Advanced Micro Devices, Nvidia projects global data center spending to surge from $600 billion in 2025 to $3 trillion to $4 trillion by 2030. This outlook suggests significant future growth for Nvidia.

AMD Stock Faces Uncertainty Before Q3 Report

Advanced Micro Devices AMD recently partnered with OpenAI to provide 6 gigawatts of computing power, but Nvidia and Broadcom secured larger 10 gigawatt deals. AMD's Q2 data center revenue grew only 14% year over year and dropped 12% quarter over quarter, while Nvidia saw a 73% increase. Investors are watching AMD's Q3 report, expected after November 4, for updates on future demand and improvements to its ROCm software. The stock's current high valuation and past disappointing results suggest caution before the Q3 announcement.

Taiwan Semiconductor Powers AI Industry With New Chips

Taiwan Semiconductor Manufacturing TSMC is considered a top AI stock, manufacturing chips for major companies like Nvidia, Advanced Micro Devices, Broadcom, and Apple. TSMC's new 2nm chip node is entering production, offering 25% to 30% less power consumption than 3nm chips, helping address AI's energy demands. The company's Q3 revenue increased 41% year over year in US dollars. With global data center spending projected to reach $3 trillion to $4 trillion by 2030, TSMC expects its revenue to grow by 148% by 2030.

Oracle and TSMC Lead AI Infrastructure Growth

Oracle and Taiwan Semiconductor Manufacturing TSMC are strong AI infrastructure stocks. Oracle's cloud platform is rapidly expanding, with Q1 revenue up 12% to $15 billion and cloud infrastructure revenue surging 55% to $3.3 billion. Oracle has $300 billion in future sales from OpenAI and expects 31% annual revenue growth to $225 billion by fiscal 2030. TSMC, a top chip supplier for Nvidia and Advanced Micro Devices, holds 70% of the foundry market share. TSMC's Q3 revenue rose 30% to $33 billion, driven by strong demand for AI chips.

Oracle and TSMC Drive AI Infrastructure Expansion

Oracle and Taiwan Semiconductor Manufacturing TSMC are key players in the booming AI infrastructure market. Oracle's cloud platform shows rapid growth, with Q1 revenue increasing 12% to $15 billion and cloud infrastructure revenue up 55% to $3.3 billion. Oracle expects $300 billion in future sales from OpenAI and projects 31% annual revenue growth to $225 billion by fiscal 2030. TSMC, a leading chip supplier for companies like Nvidia and Advanced Micro Devices, holds 70% of the foundry market. TSMC's Q3 revenue rose 30% to $33 billion, fueled by high demand for AI chips.

Monolithic Power Systems Shows Caution Despite Growth

Monolithic Power Systems MPWR reported record revenue growth, driven by strong demand in automotive and AI-powered data centers. The company partnered with ECARX for automotive intelligence and AI, aligning with its growth strategy. However, management expressed a cautious outlook on future demand, highlighting potential risks from short ordering cycles and inventory corrections. Monolithic Power Systems projects $3.9 billion in revenue and $1.0 billion in earnings by 2028.

Nvidia Expands Into Telecom With Nokia Partnership

Nvidia, a leader in AI data centers with its powerful GPUs, is making a significant move into the telecommunications industry. The company partnered with Nokia to introduce its new Nvidia Aerial Radio Network Computer ARC, a programmable computer for wireless communication and AI processing. Nokia plans to use ARC as its base station for 6G technology, aiming to improve cellphone communication speed and quality. This partnership allows Nvidia to expand beyond data centers into the $3 trillion telecom market, ensuring future revenue growth.

XPO Uses AI to Boost Productivity and Earnings

XPO, a trucking company, reported strong third-quarter results, exceeding revenue and earnings estimates. Revenue increased 2.8% to $2.11 billion, with growth in both North American LTL and European Transportation segments. The company improved its operating ratio by 150 basis points and raised pricing by 5.9%, even as tonnage and shipments decreased. XPO is leveraging AI to enhance productivity in areas like linehaul management, pickup and delivery operations, and labor management. These AI-driven improvements are expected to continue boosting margins and positioning the company for future growth.

Celestica Price Target Rises After Strong Q3 Earnings

BMO Capital raised its price target for Celestica Inc. CLS to $370 from $300 on October 29, keeping an Outperform rating. This follows Celestica's strong Q3 earnings, which exceeded expectations. Analyst Fadi Chamoun noted robust demand for Celestica's services in the second half of 2023 and into 2024. The company is benefiting from the AI boom and its strategy to diversify revenue streams. Strong demand in the aerospace and defense and industrial segments, along with reduced reliance on the communications market, drove Celestica's Q3 success.

Nvidia Faces High Expectations as Value Reaches 5 Trillion

Nvidia, now a $5 trillion company, faces high investor expectations for sustained growth in the AI sector. CEO Jensen Huang believes AI will transform every industry, with 2025 being the year of AI agents. While Q1 FY26 revenue was $44.1 billion, with data-center revenue up 73% to $39.1 billion, future revenue growth is projected to slow from triple-digits to around 50%. Nvidia plans to release new Blackwell Ultra and Rubin chips beyond 2027. The company's continued success depends on perfect execution, stable policies, and ongoing global demand for AI computing.

Mercor Founders Become Youngest Self-Made Billionaires

Three 22-year-old cofounders of Mercor, an AI recruitment startup, have become the world's youngest self-made billionaires. CEO Brendan Foody, CTO Adarsh Hiremath, and board chairman Surya Midha achieved this after a $350 million funding round valued Mercor at $10 billion. This surpasses Mark Zuckerberg's record of becoming a billionaire at 23. Founded in 2023, Mercor initially matched software engineers using AI avatars and later expanded into data labeling for top AI labs like OpenAI.

Vertiv Partners NVIDIA for AI Infrastructure Solutions

Vertiv Holdings Co VRT announced a partnership with NVIDIA to develop gigawatt-scale reference architectures for the NVIDIA Omniverse DSX Blueprint. This collaboration will enable faster and more flexible AI factory deployments, including for platforms like NVIDIA Vera Rubin. Vertiv will integrate its advanced liquid cooling, power management, and digital twin capabilities into these solutions, which include prefabricated, hybrid, and traditional data center builds. This partnership positions Vertiv as a key enabler of next-generation AI infrastructure, significantly impacting its investment outlook.

Sources

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• Why Is Monolithic Power (MPWR) Cautious on AI Despite Record Revenue Growth?
• Nvidia Just Made a Game-Changing Move
• XPO Speeds Past the Competition Again. AI Could Give It Another Leg Up
• Celestica (CLS) Price Target Raised to $370 at BMO Following Earnings Beat
• Investors ask whether $5 trillion Nvidia can sustain our faith in AI
• Mark Zuckerberg no longer youngest ‘self-made billionaire’ as three 22-year-old Mercor founders bag record
• How Vertiv’s AI Infrastructure Partnership With NVIDIA Is Changing Its Investment Story (VRT)