Axios: Nvidia almighty

Posted on August 28, 2026 by michelleclarke2015
Nvidia almighty
 
A bar chart showing publicly-traded U.S.-based companies by sector and market cap as of August 26, 2026. Information technology is the largest sector shown, at $26.3 trillion, followed by financials (10.3 trillion) and communications services (9.5 trillion). Nvidia has a market cap of over 5 trillion, making it larger than the bottom five sectors.Data: S&P Capital IQ Pro. Chart: Erin Davis/Axios Visuals

Nvidia made billions selling AI’s essential ingredient: chips.

Now the company is plowing those riches straight back into the AI ecosystem, betting on a buildout that craves ever more compute, Axios’ Madison Mills writes.

Why it matters: Nvidia has become the AI industry’s supplier, banker and kingmaker, feeding a self-reinforcing cycle in which chip profits finance the next wave of chip demand.

State of play: Already the world’s most valuable company, Nvidia is now worth more than five of the 11 sectors that make up the S&P 500.

The chipmaker reported nearly $60 billion in quarterly profit Wednesday, prompting The Kobeissi Letter to call the results “the most impressive earnings in history.”

Nvidia believes its reign is far from over, telling investors to expect roughly 70% revenue growth even from today’s extraordinary heights.

🔭 Zoom out: Nvidia’s vast chip windfall has enabled the company to take on a new role as financial patron of the entire AI industry.

Nvidia is involved in more than $750 billion worth of AI investments, financing deals and partnerships, according to PitchBook — a staggering footprint for a company whose core business is still selling chips.

That figure does not include this week’s reported $13 billion acquisition of Hugging Face, which would give Nvidia control over one of the industry’s most important model-distribution hubs.

CEO Jensen Huang has enlisted Wall Street to mobilize more than $500 billion for AI infrastructure, channeling outside capital toward the data-center buildout that drives more than 90% of Nvidia’s quarterly revenue.

🎡 Between the lines: The strategy creates a powerful flywheel: The more money Nvidia helps pour into AI, the more compute the industry builds — and the more chips it needs.

Reality check: Critics say Nvidia’s flywheel looks uncomfortably circular.

The company is helping finance customers and infrastructure projects that then spend heavily on its own hardware, raising questions about how much demand is being supported by Nvidia’s own balance sheet.

Huang has dismissed those concerns, telling CNBC Wednesday that Nvidia’s investments will generate “tremendous returns” and that “the risk is low.”

Threat level: The cozy relationship between Nvidia and its biggest customers is becoming increasingly competitive.

OpenAI, Google, Amazon, Microsoft and others are pouring billions into custom chips designed to reduce their dependence on Nvidia. OpenAI claims its new Jalapeño chip outperforms Nvidia hardware on some workloads.

Nvidia, meanwhile, is spending billions developing its own open-source AI models, aiming to become the American champion in a field increasingly dominated by Chinese models.

The bottom line: The result is an unusually tangled ecosystem in which Nvidia is simultaneously supplier, investor, partner — and increasingly competitor — to AI’s biggest players.Share this story.
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About michelleclarke2015

Life event that changes all: Horse riding accident in Zimbabwe in 1993, a fractured skull et al including bipolar anxiety, chronic fatigue …. co-morbidities (Nietzche 'He who has the reason why can deal with any how' details my health history from 1993 to date). 17th 2017 August operation for breast cancer (no indications just an appointment came from BreastCheck through the Post). Trinity College Dublin Business Economics and Social Studies (but no degree) 1997-2003; UCD 1997/1998 night classes) essays, projects, writings. Trinity Horizon Programme 1997/98 (Centre for Women Studies Trinity College Dublin/St. Patrick's Foundation (Professor McKeon) EU Horizon funded: research study of 15 women (I was one of this group and it became the cornerstone of my journey to now 2017) over 9 mth period diagnosed with depression and their reintegration into society, with special emphasis on work, arts, further education; Notes from time at Trinity Horizon Project 1997/98; Articles written for Irishhealth.com 2003/2004; St Patricks Foundation monthly lecture notes for a specific period in time; Selection of Poetry including poems written by people I know; Quotations 1998-2017; other writings mainly with theme of social justice under the heading Citizen Journalism Ireland. Letters written to friends about life in Zimbabwe; Family history including Michael Comyn KC, my grandfather, my grandmother's family, the O'Donnellan ffrench Blake-Forsters; Moral wrong: An acrimonious divorce but the real injustice was the Catholic Church granting an annulment – you can read it and make your own judgment, I have mine. Topics I have written about include annual Brain Awareness week, Mashonaland Irish Associataion in Zimbabwe, Suicide (a life sentence to those left behind); Nostalgia: Tara Hill, Co. Meath.
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