NVIDIA Robs All of Big Tech. Except Apple

"NVIDIA ( NASDAQ:NVDA | NVDA Price Prediction) just guided fiscal first quarter 2027 revenue to roughly $78 billion, on top of full year fiscal 2026 revenue of $215.94 billion, all delivered at non-GAAP gross margins of 75%. Every dollar of hyperscaler capex routed through Jensen Huang's company converts to outsized profit. Big Tech's earnings used to define the high water mark of corporate America. They are now being rerouted to Santa Clara."

"Look at 2026 capex commitments. Amazon ( NASDAQ:AMZN) plans about $200 billion in capex this year, with Q1 alone hitting $44.2 billion, up 77% year over year. Alphabet ( NASDAQ:GOOGL) raised its 2026 guidance to $175 to $185 billion, with Q1 capex of $35.7 billion, more than double last year. Meta Platforms ( NASDAQ:META) raised its range to $125 to $145 billion. That is more than half a trillion dollars in 2026 spending from three companies, with the dominant destination being NVIDIA silicon and systems built around it."

"The Visible Win NVIDIA's shareholders are getting paid. The stock is up 21% year to date and 74% over one year, on a market cap near $5.63 trillion. Q4 fiscal 2026 free cash flow alone hit $34.9 billion. Street estimates project NVIDIA will generate roughly $421 billion in free cash flow across 2026 and 2027 combined, exceeding the FCF of Apple, Alphabet, Meta, and Amazon combined."

"The Hidden Cost That math only works if you understand what happens on the other side. Alphabet's Q1 free cash flow fell 47% year over year to $10.1 billion as capex doubled. Amazon's trailing twelve month FCF collapsed 95% to $1.2 billion. Forward projections put Alphabet's 2026 to 2027 FCF at around $50 billion, with Amazon and Meta each under $20 billion. Revenue keeps growing. The cash that used to belong to hyperscaler shareholders now lands in NVIDIA's bank ac"

Hyperscalers are spending hundreds of billions on AI infrastructure, and most of that spending flows to NVIDIA. NVIDIA guided fiscal first quarter 2027 revenue to about $78 billion, building on fiscal 2026 revenue of $215.94 billion, with non-GAAP gross margins of 75%. Large capex commitments in 2026 include Amazon at about $200 billion, Alphabet at $175 to $185 billion, and Meta at $125 to $145 billion, totaling more than half a trillion dollars. NVIDIA’s shareholders benefit through strong stock performance and large free cash flow, with estimates projecting roughly $421 billion across 2026 and 2027. Hyperscaler free cash flow declines sharply as capex rises, shifting cash from hyperscaler shareholders to NVIDIA.

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