"NVIDIA's Data Center segment hit $62.31 billion, but the wilder number is networking at $10.98 billion, up 263% YoY, reflecting NVLink fabric demand for GB200 and GB300 racks. Jensen Huang told investors "Grace Blackwell with NVLink is the king of inference today", and the partner roster (Meta, Anthropic, CoreWeave, AWS, Oracle) supports that claim."
"Alphabet's growth engine is more distributed. Google Cloud grew 63% to $20.03 billion, Search lifted 19% to $60.4 billion, and Gemini now processes 16 billion tokens per minute via direct API, up 60% QoQ. Sundar Pichai called it "our strongest quarter ever for our consumer AI plans"."
"NVIDIA is doubling down on a single product cadence: Blackwell Ultra now, Vera Rubin next, with Huang promising "an order-of-magnitude lower cost per token". Supply commitments sit at $95.2 billion, and Q1 FY2027 guidance of $78.0 billion explicitly assumes zero China Data Center compute revenue. That is a confident bet, with a real geopolitical asterisk."
"Alphabet is funding the other side of the equation. Management already guided 2026 CapEx to $175 to $185 billion, and Q1 spend alone hit $35.67 billion, more than double YoY. The cost: free cash flow fell 46.63% to $10.12 billion. Waymo's 500,000+ fully autonomous rides per week hints at where some of that cash is going."
NVIDIA closed fiscal year results with $68.13 billion in Q4 revenue, up 73.2% year over year. Data Center revenue reached $62.31 billion, while networking rose to $10.98 billion, up 263% year over year, reflecting NVLink fabric demand for GB200 and GB300 racks. Alphabet reported $109.90 billion in Q1 revenue and a $460 billion Cloud backlog. Google Cloud grew 63% to $20.03 billion, Search increased 19% to $60.4 billion, and Gemini processed 16 billion tokens per minute via direct API, up 60% quarter over quarter. Alphabet’s capex guidance for 2026 is $175 to $185 billion, with Q1 spend at $35.67 billion, while free cash flow fell 46.63% to $10.12 billion.
#ai-infrastructure #nvidia-blackwell #alphabet-google-cloud #gemini-and-tokens #capex-and-free-cash-flow
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