Every Nvidia Investor Should Keep an Eye on This Number

If you want to know where a company's sales are heading, it's a good idea to follow what its key customers are saying about spending. In the case of Nvidia (NASDAQ: NVDA), that means looking at how hyperscaler cloud service providers like Amazon.com's Amazon Web Services, Alphabet's Google Cloud, and Microsoft's Azure are planning to spend money on AI and data centers and whether their plans are changing.As data center equipment companies like Vertiv recently outlined, the pipeline of investment in data centers remains strong. The capital spending plans of the cloud service providers discussed above support that view.The good news is that they are planning significant increases in spending in 2025, and that's great news for Nvidia. For example, Amazon's spending on property and equipment was $83 billion in 2024,but when discussing plans for 2025 on its earnings call in February, CFO Brian Olsavsky said he expected the run rate of $26.3 billion to represent spending in 2025. This equates to $105.2 billion, and he said that "the majority of the spend will be to support the growing need for technology infrastructure. This primarily relates to AWS."Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool