In a recent note, Belton pointed to Meta\u2019s Muse Spark 1.1 and xAI\u2019s Grok 4.5 as evidence that frontier AI developers continue to rely on Nvidia\u2019s infrastructure to train their most advanced models.<\/p>\n
The AI Race Is Still Running On Nvidia<\/p>\n
\u201cBoth models were trained on NVDA infrastructure, suggesting there is still a clear value proposition for using NVDA\u2019s stack,\u201d Belton wrote.<\/p>\n
While those in-house silicon efforts continue to expand, Belton argues the latest generation of frontier models shows Nvidia remains the platform of choice for the industry\u2019s most demanding AI workloads.<\/p>\n
Why Meta Matters<\/p>\n
Belton also sees another reason Nvidia has outperformed the broader semiconductor sector to start the third quarter.<\/p>\n
He pointed to reports suggesting Meta\u2019s AI infrastructure spending in 2027 could come in well above Wall Street expectations, reinforcing the view that the hyperscaler capital expenditure cycle is far from over.<\/p>\n
That matters because hyperscalers account for roughly 50% of Nvidia\u2019s business, according to Belton.<\/p>\n
\u201cThe market has become concerned about the durability of those revenues,\u201d he wrote, noting that many hyperscalers are operating around break-even free cash flow. Meta\u2019s expanding infrastructure ambitions, however, provide greater near-term visibility into AI spending, even if longer-term questions remain.<\/p>\n
Competition May Be Nvidia\u2019s Biggest Advantage<\/p>\n
Belton\u2019s most notable takeaway is that Nvidia doesn\u2019t necessarily need one dominant AI winner. Instead, he argues, competition among leading AI labs is a positive.<\/p>\n
\u201cFragmentation in the LLM space is a good thing for NVDA,\u201d Belton wrote, adding that a winner-take-all market for AI models would be less attractive for Nvidia over the long run.<\/p>\n
For Nvidia investors, that means every breakthrough from companies like Meta, xAI, Anthropic or others isn\u2019t just another milestone in the AI race\u2014it could also reinforce demand for the infrastructure powering it.<\/p>\n
Image via Shutterstock<\/p>\n","protected":false},"excerpt":{"rendered":"In a recent note, Belton pointed to Meta\u2019s Muse Spark 1.1 and xAI\u2019s Grok 4.5 as evidence that…\n","protected":false},"author":2,"featured_media":104441,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[8789,14945,5896,7911,5892,5891,7706,7777,7778,9068,5899,8226,28294,444,7707,7779,7914,8114,7879,2899],"class_list":["post-104440","post","type-post","status-publish","format-standard","has-post-thumbnail","category-xai","tag-category-large-cap","tag-category-long-ideas","tag-category-tech","tag-category-trading-ideas","tag-cms-wordpress","tag-pageisbzpro-bz","tag-symbol-amzn","tag-symbol-goog","tag-symbol-googl","tag-symbol-meta","tag-symbol-msft","tag-symbol-nvda","tag-symbol-spcx","tag-tag-ai","tag-tag-anthropic","tag-tag-artificial-intelligence","tag-tag-expert-ideas","tag-tag-stories-that-matter","tag-tag-xai","tag-xai"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/104440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=104440"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/104440\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/104441"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=104440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=104440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=104440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}