Stacy Rasgon Says Nvidia (NVDA)-Open AI Deal Shows There’s ‘Shortage of Compute’ – ‘Customers Are Lining Up Years in Advance’

We recently published 10 Stocks Everyone’s Talking About As AI Investments Continue. NVIDIA Corporation (NASDAQ:NVDA) is one of the stocks analysts were recently talking about.

Stacy Rasgon, Bernstein senior semiconductor analyst, was recently asked about the NVIDIA Corp (NASDAQ:NVDA)-OpenAI $100 billion deal and what it indicates. 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 primary overarching themes seems to be a shortage of compute. Everybody out there who’s involved in this seems to still be scrambling for compute. And so I do think that is part of this, and you know, Jensen’s thrown 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 — but I do think that it’s big. So you have that. I think the power question is very interesting. I think customers are lining up power in front of these kinds of investments years in advance because the power infrastructure as it sits isn’t there; that has to be put in front. People have really thought about whether or not power might actually be the primary constraint as we ramp all this up over time. It may not even be compute. Over time, I mean.”

The current AI boom cycle stems from spending by major tech companies, and Nvidia is the biggest beneficiary of this 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. In the latest quarter, $41.3 billion of the $46.7 billion revenue came from these clients. The music could stop for Nvidia if these major companies decide to slow down their spending amid a lack of ROI. If investors sense a weakness in CapEx spending, and the market begins to waver, NVDA stock price would be the first to see its impact.

Baird Chautauqua International and Global Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2025 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) reported first quarter results that were extremely solid. The company took a write-down on China-specific datacenter products and flushed out any future China contributions from their guidance, following the new export restrictions introduced in April. Demand commentary ex China was extremely encouraging—Nvidia is outgrowing expectations despite supply constraints and outgrowing competing ASIC products by a large margin. We have been underweight Nvidia relative to the benchmark, which was up 46% in the quarter, given our short-to medium-term concerns that the feverish AI datacenter build may be resulting in overcapacity, which has not come to bear.”

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.