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Big Tech showed it won’t back down on AI spending. Some on Wall Street are still wary. - MarketWatch

1. Big Tech plans substantial AI data-center buildouts despite recession fears. 2. Capital expenditure growth accelerated to 71%, reaching $81 billion this quarter. 3. Analysts foresee continued AI spending despite potential overall budget cuts. 4. Concerns arise regarding overspending on AI amidst competition from China. 5. Nvidia receives a sell rating due to scrutiny of AI budgets.

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FAQ

Why Bearish?

Increased scrutiny on AI spending raises concerns about Nvidia's future revenues, similar to past downturns in tech budgets impacting suppliers.

How important is it?

The article highlights significant trends affecting Nvidia's core markets, indicating potential obstacles for growth.

Why Short Term?

Immediate budget concerns may influence investor sentiment and stocks in the coming quarters.

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