NVDA has been the big behemoth of the market so where it goes, so goes the market as it affects many other companies. OpenAI just slashed its long-term capex target dramatically, from $1.4 trillion to $600 billion by 2030. That's a 57% cut from earlier projections. The company is now tying spends more tightly to actual revenue growth, which hit $13.1 billion in 2025 but still burned heavy cash. This isn't panic; it's realism. It signals the AI arms race is maturing: less infinite spending, more disciplined scaling.
That shift could cool the wildest enthusiasm. If more players follow suit and prioritize ROI over endless buildouts, capex forecasts across the board might moderate. For NVIDIA, it's mixed: near-term demand stays robust, but a slower ramp in total infrastructure dollars could cap upside later. The focus moves from sheer scale to profitable, efficient AI deployment.
Bottom line: NVDA's results prove the core AI engine is firing on all cylinders. The sector gets breathing room to climb. Yet OpenAI's capex reset reminds us reality is setting in; fortune favors those who align with real momentum, not hype.
We are also seeing potential stagflation where GDP came in light, well below estimates, and CPI and PPI are hot which is good for precious metals (as in the 1970s).
### Quick Recap of the Data (as of late Feb 2026)
- **GDP** came in soft (below consensus, weak consumer/business spending signals).
- **CPI & PPI** surprised to the upside (hotter-than-expected inflation prints across core and headline).
That combination — tempered growth + persistent/reaccelerating inflation — is the exact environment where traditional equities and bonds get squeezed while **hard assets** (gold, silver, miners) tend to shine.
List of Potential ETFs for investors:
1-times inverse
PSQ - NASDAQ 100 1x bear.
2-times inverse
QID - NASDAQ 100 2x bear.
3-times inverse
SQQQ - NASDAQ 100 3x bear.
NOTE: This is a suggested list. Investors may wish to become acquainted with the full range of available ETFs, and should make an effort to understand how these ETFs are created and what their components are, as well as being aware of the downside risks involved, especially with leveraged ETFs. Certain ETFs may be more appropriate depending on one's risk tolerance levels. Typing in keyword 'ETF' into the FAQ keyword search bar or going here https://www.virtueofselfishinvesting.com/faqs/search?p=1&q=etf and visiting this site https://etfdb.com/ can be instructive.