Nvidia’s Micron-Led Bounce Tests Confidence in the AI Capex Cycle

Nvidia rebounded near $200 after Micron's record earnings reignited confidence in AI semiconductor demand. CEO Jensen Huang declared AI has entered a profitability era and confirmed the next-generation Vera Rubin architecture is in full production. However, the stock faces headwinds from rising competition, margin pressure from memory suppliers, geopolitical risks from China export controls, and uncertainty about whether AI capital spending can sustain current growth rates.