The next catalysts for AI hyperscalers

Yahoo Finance Video and Julie Hyman

Fri, February 27, 2026 at 4:30 AM GMT+9

In this video:

•                                       StockStory Top Pick 
  

  NVDA

  -5.17%

  MSFT

  +0.24%

 GOOG  

 -1.60%  

 

 

 XLK  

 -1.59%  

 

 

 ^GSPC  

 -0.57%  

Stifel applied technology analyst Ruben Roy — alongside D.A. Davidson head of technology research Gil Luria — explores what the next catalysts could be for AI hyperscalers, such as Nvidia (NVDA), Microsoft (MSFT), and Alphabet (GOOG, GOOGL).

To watch more expert insights and analysis on the latest market action, check out more Market Catalysts.

Video Transcript

00:00 Speaker A

I I mean, listen, I look at that one-year Nvidia chart and I see a lot of sideways movement. And so I guess then the next question is like, what happens to get it to break out of that sideways movement? What is the next catalyst? I mean, maybe Gilad as you say, you know, Microsoft comes out with even more eye popping spending plans for next year. I mean, Reuben, what would be your contender for for what the next catalyst could be?

00:31 Reuben

Uh yeah, we’ve seen some um innovation on the frontier model side. There was a lot of um chatter around Google’s Gemini 3. We really haven’t seen uh the latest, you know, sort of frontier models operating on uh Nvidia’s Grace Blackwell infrastructure. Um so we have that to come. I think that could be uh interesting. Nvidia’s got a big event coming up obviously in mid- March with their GTC event and uh you know, potentially some longer-term perspective on the technology roadmap as well as how they’re thinking about uh alignment with hyperscalers. But I I would say another thing that came up on the call last night uh was, you know, sort of this concept of diversification of revenue outside of hyperscalers. So hyperscaler is driving around 50% of the data center revenue today, but areas like sovereign government, enterprise, neo clouds and others, you know, really starting to step in and accelerate, you know, some of the growth. So, you know, I think as as some of those other areas um you know, continue to progress, you know, those could act as catalysts as we float through this year and then obviously we’ve got yet another uh introduction of a new architecture coming uh later this year with their Rubin. So I think there’s a lot on the plate coming that could be, you know, positive catalyst for the the stock. and to Gill’s point, you know, with the multiple where it is today relative to a lot of the other component suppliers and chip companies into AI infrastructure, it seems like the risk to reward here uh would skew favorably as we go through some of those events.

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