{"version":1,"type":"story","url":"https://digestai.news/story/ai-spending-nears-1-trillion-annually-risking-nvidia-and-micron","json":"https://digestai.news/story/ai-spending-nears-1-trillion-annually-risking-nvidia-and-micron.json","markdown":"https://digestai.news/story/ai-spending-nears-1-trillion-annually-risking-nvidia-and-micron.md","slug":"ai-spending-nears-1-trillion-annually-risking-nvidia-and-micron","headline":"AI spending nears $1 trillion annually, risking Nvidia and Micron","summary":"AI capital expenditures are approaching **$1 trillion** yearly, fueling demand for chipmakers like **Nvidia** and **Micron Technology**. Both companies reported record revenue in recent quarters: **Nvidia** earned **$96.2 billion** in fiscal 2027’s second quarter, with its data center segment generating **$89 billion**—more than double the prior year’s figure. **Micron** posted **$54.2 billion** in fiscal 2026’s fourth quarter and **$133.2 billion** for the full year, driven by high-bandwidth memory (HBM) demand for AI workloads. Both firms now face risks if AI spending slows, though analysts still rate them as buys with upside potential of **~51%** for **Nvidia** and **~75%** for **Micron**, though at forward P/E ratios of **24x** and **5x**, respectively. **Nvidia**’s growth hinges on sustained AI infrastructure investment, while **Micron** warns of a potential supply glut in memory chips, which could hurt margins if demand falters.","keyPoints":["AI spending is nearing **$1 trillion** annually, driving record revenue for **Nvidia** ($96.2B in Q2 2027) and **Micron** ($133.2B in 2026)","**Micron**’s HBM4 memory products launched in high-volume shipments, but oversupply could collapse prices if demand drops"],"whyItMatters":"A slowdown in AI spending could trigger a sharp correction for chipmakers tied to AI infrastructure, testing valuations of **Nvidia** and **Micron**—the two most exposed players.","category":{"slug":"business","name":"Business & Funding","url":"https://digestai.news/category/business"},"entities":{"companies":["Nvidia","Micron Technology"],"models":[],"people":[]},"firstPublishedAt":"2026-10-28T01:20:00Z","updatedAt":"2026-10-28T01:20:00Z","sourceCount":1,"hasPrimarySource":false,"sources":[{"outlet":"fool.com","title":"AI Spending Is Nearing $1 Trillion Annually. These 2 Stocks Are Most at Risk If It Slows.","url":"https://fool.com/investing/2026/10/28/ai-spending-is-nearing-1-trillion-2-stocks-most-at","publishedAt":"2026-10-28T01:20:00Z","type":"press","primary":false,"lead":true}],"sourceNotes":null,"discussions":[],"thread":{"title":"AI Memory Race Fuels Chip Giants","url":"https://digestai.news/thread/nvidia-named-better-buy-than-micron-as-ai-memory-demand-grows","storyCount":2},"cite":{"text":"Digest AI, \"AI spending nears $1 trillion annually, risking Nvidia and Micron\", 28 October 2026, https://digestai.news/story/ai-spending-nears-1-trillion-annually-risking-nvidia-and-micron","publisher":"Digest AI","title":"AI spending nears $1 trillion annually, risking Nvidia and Micron","datePublished":"2026-10-28T01:20:00Z","url":"https://digestai.news/story/ai-spending-nears-1-trillion-annually-risking-nvidia-and-micron"},"generatedBy":"Written by Digest AI's editorial model from the linked sources; the sources are the record.","license":"Headlines, digests and key points are written by Digest AI and may be quoted with a link to the story page. Linked articles belong to their publishers. Terms: https://digestai.news/terms#reuse"}