Nvidia is back in the spotlight—again—as the S&P notches another record high and both Nvidia and AMD jump over 2% on the day. The excitement is fueled by a perfect storm: Trump’s “America AI Action Plan” promises to ease regulations and speed up data center development, while Alphabet’s $10 billion capex announcement is another strong signal that Big Tech’s appetite for AI infrastructure is only getting bigger.

Capex is the lifeblood of Nvidia’s story. When you see companies like Alphabet (and likely Amazon, Microsoft, Meta, and Apple soon) ramping up spending on AI and cloud, you’re seeing direct demand for Nvidia’s cutting-edge GPUs and networking gear. In other words: if tech titans keep shoveling billions into data centers, Nvidia’s revenue flywheel stays greased. Alphabet’s $10 billion headline is not just bullish for its own stock, but a green light for Nvidia’s next growth phase.

The question, though, is whether Nvidia’s rebound is sustainable and whether $200 is actually within reach this year. After breaching $4 trillion in market cap, expectations are sky-high, and the stock has already run hard. Some consolidation around $170 wouldn’t be shocking—stocks rarely go straight up forever, and you can expect profit-taking and nervousness ahead of big tech earnings. Still, the secular trend is undeniable: AI spending is accelerating, not slowing, and Nvidia’s ecosystem dominance is only growing. Trump’s policy pivot, if it delivers, could turbocharge US data center buildouts even more, and that’s a direct pipeline to Nvidia’s bottom line.

In the short term, volatility is likely, especially with earnings season ahead. But unless there’s a big negative surprise in demand or a sudden slowdown in capex, the odds favour Nvidia aiming higher in the months ahead—especially if more tech giants announce mega-spending plans. $200 isn’t a sure thing, but it’s no longer a pipe dream. For now, every dip looks more like a buying opportunity than the start of a downtrend.