Amit Kukreja
NVIDA GETS TO SELL TO THE UAE, IREN MAJOR MICROSOFT DEAL, PALANTIR EARNINGS TODAY | MARKET OPEN
11/3/2025, 1:17:57 PM
Economic Summary
- The main bottleneck in the AI infrastructure buildout is power and data center shells, not a compute chip glut; without sufficient power or ready facilities, GPUs can sit unused, delaying revenue realization for chip makers like NVDA and creating demand for power solutions such as BE.
- Supply-chain dynamics are hard to predict because demand for AI hardware is volatile; even with ample chips, the pace of data center construction near power sources determines how quickly capacity becomes usable.
- Ultimately, hyperscaler purchases depend on end-customer ROI for AI services; NVIDIA's future sales hinge less on raw supply and more on whether AI deployments deliver measurable returns that justify continued investment.
Bullish
- Longer-term buildout will require huge additional power infrastructure, benefiting energy infrastructure providers.
- NVIDIA maintains a large addressable opportunity and rising analyst estimates support continued demand over time.
Bearish
- Power constraints could leave GPUs idle, slowing AI deployments and denting hardware demand.
- If hyperscalers don't see clear ROI from AI services, they may cut future NVIDIA purchases.
Bullish tickers
NVDABE
Bearish tickers
NVDA
NVDA
Bullish
Large multi-year opportunity highlighted by management and rising analyst estimates suggest strong long-term demand for NVIDIA GPUs.
Bearish
Risk that power and data center readiness leave GPUs idle and that insufficient ROI from AI services reduces repeat purchases.
BE
Bullish
Seen as a beneficiary of increased demand for power infrastructure to support AI data centers; stock reacted positively (~6% move).
Bearish
Short-term risk if data center power deployments are slower than expected; specific downsides not deeply discussed.
People mentioned
Sam AltmanSatya Nadella