GoKawiilNvidia's blowout quarter and Amazon's GPU order calm AI demand fears
Nvidia posted stronger-than-expected fiscal second-quarter results and issued a bullish forward outlook, reinforcing confidence that AI infrastructure spending remains robust. On the earnings call, Nvidia disclosed that Amazon will buy an additional 2 million of its GPUs in 2027 and 2028 even as it builds its own AI chips, and the strong report helped push the Nasdaq, S&P 500 and Dow to their best trading day since early August.
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The results show hardware and software AI stocks can rise together rather than competing for the same gains, undercutting fears that AI spending is a bubble or a zero-sum trade. Amazon's continued massive GPU orders, despite developing in-house chips, signal that even hyperscalers see returns on Nvidia's infrastructure that justify sustained capital spending, which supports the broader AI investment cycle heading into a period of renewed rate-hike uncertainty.
- Nvidia's fiscal Q2 results and strong guidance eased worries about slowing AI demand.
- Amazon will buy 2 million more Nvidia GPUs in 2027-2028 despite building its own AI chips.
- Major indexes posted their best week in three, driven largely by Thursday's AI-fueled rally.
The Intelligent Investor by Benjamin Graham — When headlines swing between AI euphoria and rate-hike jitters, Graham's classic is the steadying counterweight, teaching how to value businesses rather than chase momentum. It's the foundational text behind the kind of long-term portfolio thinking this earnings recap describes.
See The Intelligent Investor by Benjamin Graham on Amazon → Affiliate link — we may earn a commission on purchases, at no extra cost to you. Product picked by AI based on this article; it is not a tested recommendation.Source: cnbc.com — Alexa Lomonaco, 2026-08-29
Published there as: “The big lesson from this week's earnings: The AI buildout is not a zero-sum game”
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