J.P. Morgan: cloud giants' cash flow is shifting to Nvidia
A J.P. Morgan report covered by TechNews says that as Microsoft, Google (Alphabet), Meta and Amazon pour money into AI infrastructure, their free cash flow has fallen sharply — and more than 100% of that lost cash has turned into Nvidia's incremental free cash flow. The report attributes this to Nvidia's usually above-70% gross margin and pricing power, and notes its customers now include not only the big clouds but also newer providers such as CoreWeave and Lambda, sovereign AI projects and enterprises. The article also revisits Jensen Huang's forecast that global AI infrastructure spending could reach $3-4 trillion by 2030 — overall infrastructure, not Nvidia revenue alone — and describes the Vera Rubin platform combining a Vera CPU, Rubin GPU, HBM and high-speed interconnect.
It highlights how AI profits are concentrated upstream at the compute sellers, leaving cloud and application players to prove returns that justify their spending.