Nvidia (NVDA) – Open AI Deal Shows There’s a ‘Shortage in Computing’ – ‘Customers are lining up years in advance’, says Stacy Rasgon

We recently posted 10 stocks everyone is talking about as AI investments continue. NVIDIA Corporation (NASDAQ:NVDA) is one company that stock analysts have been talking about lately.

Stacy Rasgon, a senior semiconductor analyst at Bernstein, was recently asked about the $100 billion NVIDIA Corp (NASDAQ:NVDA)-OpenAI deal and what it suggests. The analyst said the deal shows there is a “shortage” of computing power and customers are lining up in advance.

“I mean, one of the underlying overarching themes seems to be the computing shortage. It seems like everyone involved in this is still scrambling for computing. And so I think that’s part of this, and, you know, Jensen put out some big numbers for what he thought infrastructure spending would be by the end of the decade. I think he said three to four trillion — like, who knows, I don’t know how big that is — but I think it’s big. So you have That. I think the energy issue is very interesting. I think customers are queuing up energy for these types of investments years in advance because the energy infrastructure isn’t there; It should be placed at the forefront. People have really thought about whether or not power might actually be the primary constraint as we ramp up all of this over time. It may not even be counted. Over time, I mean.

The current AI boom cycle stems from spending by big tech companies, and Nvidia is the biggest beneficiary of that spending. In Q2 FY2026, three direct customers accounted for 23%, 19% and 14% of NVDA’s accounts receivable. Almost all of the company’s revenue comes from AI-related infrastructure spending. Last quarter, $41.3 billion of $46.7 billion in revenue came from these customers. The music could stop for Nvidia if these major companies decide to slow down their spending amid a lack of return on investment. If investors sense a weakness in capital spending, and the market begins to fluctuate, NVDA’s stock price will be the first to see its impact.

Baird Chautauqua International and Global Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in their report Investor letter for the second quarter of 2025:

“NVIDIA Corporation (NASDAQ:NVDA) reported very strong first quarter results. The company has delisted its data center products for China and deleted any future contributions to China from its guidance, following new export restrictions imposed in April. The demand commentary outside of China was very encouraging – Nvidia’s growth exceeded expectations despite supply constraints and outpaced competing ASIC products by a large margin. We were underweight Nvidia relative to the benchmark, which was up 46% in the quarter, given our short-to-medium-term concerns that frenetic AI data center construction might lead to capacity overload, which it didn’t.