Nvidia posts 85% revenue surge but omits China from forecast

Financial outlets describe Nvidia as the central winner of the AI hardware boom, with its earnings now moving broad indexes like the S&P 500. They stress that while Nvidia can supply chips, limits in power infrastructure, financing, and data center build-out could slow the pace of AI spending. Many expect continued high demand but warn that any stumble in Nvidia’s growth or pricing power would ripple through global tech stocks and passive funds.

• •Nvidia’s earnings growth and index weight mean its results now sway S&P 500 performance.
• •Power-grid constraints and data center build costs could cap how quickly AI chip orders grow.
• •High shareholder payouts from Nvidia signal confidence but may also reflect fewer internal uses for cash.
• •Other firms such as Lenovo and energy infrastructure plays are emerging as secondary AI beneficiaries.
• •Rising US Treasury yields are shaping how investors value Nvidia’s long-term AI cash flows.