<div id="readability-page-1"><p>If you want to know where a company's sales are heading, it's a good idea to follow what its key customers are saying about spending. In the case of <strong>Nvidia</strong> <span>(NVDA<span> -0.66%</span>)</span>, that means looking at how hyperscaler cloud service providers like <strong>Amazon.com</strong>'s Amazon Web Services, <strong>Alphabet</strong>'s Google Cloud, and <strong>Microsoft</strong>'s Azure are planning to spend money on AI and data centers and whether their plans are changing.</p> <h2>Spending on data centers remains robust</h2> <p>As data center equipment companies like <strong>Vertiv</strong> recently outlined, the pipeline of investment in data centers remains strong. The capital spending plans of the cloud service providers discussed above support that view.</p>  <p>The good news is that they are planning significant increases in spending in 2025, and that's great news for Nvidia. For example, Amazon's spending on property and equipment was $83 billion in 2024,but when discussing plans for 2025 on its earnings call in February, CFO Brian Olsavsky said he expected the run rate of $26.3 billion to represent spending in 2025. This equates to $105.2 billion, and he said that &#34;the majority of the spend will be to support the growing need for technology infrastructure. This primarily relates to AWS.&#34;</p> <p>Turning to Alphabet, which made $52.5 billion in capital spending in 2024, its CFO Anat Ashkenazi said it planned to spend $75 billion in 2025 and &#34;increase our investments in capital expenditure for technical infrastructure, primarily for servers followed by data centers and networking.&#34; </p> <p>It's a similar story at Microsoft, where Vice Chair and President Brad Smith told investors that Microsoft plans to spend $80 billion in its fiscal 2025 to build out AI-enabled data centers -- part of a trend in which Microsoft has doubled its data center capacity over the last three years. </p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MTIwMzIvZ2V0dHlpbWFnZXMtMTEyNTg5NDQ3NS0xMjAxeDgwMS1kMjFiNDVkLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="467" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MTIwMzIvZ2V0dHlpbWFnZXMtMTEyNTg5NDQ3NS0xMjAxeDgwMS1kMjFiNDVkLmpwZyZ3PTcwMA"/></p><p>Image source: Getty Images.</p> </div> <h2>No let-up in demand for Nvidia</h2> <p>The trends in AI-related data center spending remain excellent. Unless these companies change their capital spending plans and management outlooks, Nvidia is likely set to have another great year.</p>                                                                            </div>

Nvidia will release its first quarter report for fiscal year 2026 ending April 27, 2025. 

According to analysts surveyed by FactSet, Nvidia's first-quarter revenue is expected to increase 66% year-on-year to $43.3 billion; adjusted earnings per share will increase 44% year-on-year to $0.88. The growth rate of revenue and profits has slowed significantly compared with the same period last year. In the same period last year, Nvidia's revenue increased by 262% year-on-year, and its adjusted earnings per share increased by 461% year-on-year.

<p>Nvidia will release its first quarter report for fiscal year 2026 ending April 27, 2025. <br><br>According to analysts surveyed by FactSet, Nvidia's first-quarter revenue is expected to increase 66% year-on-year to $43.3 billion; adjusted earnings per share will increase 44% year-on-year to $0.88. The growth rate of revenue and profits has slowed significantly compared with the same period last year. In the same period last year, Nvidia's revenue increased by 262% year-on-year, and its adjusted earnings per share increased by 461% year-on-year.</p>

NVIDIA Financial Results for Q4 Fiscal 2025

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<p>Nvidia investors should monitor spending trends from major cloud service providers like Amazon, Google, and Microsoft, as their capital expenditure plans indicate strong demand for AI and data centers. Amazon plans to increase spending to $105.2 billion in 2025, Google to $75 billion, and Microsoft to $80 billion. These investments suggest robust growth for Nvidia, as the demand for AI-related data center spending remains high, ensuring a positive outlook for the company in the coming year.</p>

- Key customers' spending plans, particularly from hyperscaler cloud service providers, are crucial for predicting Nvidia's sales trajectory.  
- Major companies like Amazon, Alphabet, and Microsoft are significantly increasing their capital expenditures for AI and data centers in 2025, with Amazon planning $105.2 billion, Alphabet $75 billion, and Microsoft $80 billion.  
- This robust investment trend indicates sustained demand for Nvidia's products, suggesting a positive outlook for the company in the coming year.

Every Nvidia Investor Should Keep an Eye on This Number