Middle East Conflict Drives Oil and Gas Prices, Impacting AI Sector
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 22 2026
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Rising Energy Prices: The geopolitical conflict in the Middle East has led to a significant increase in oil and gas prices, which could raise manufacturing costs for AI companies like Nvidia, potentially impacting their profitability and market performance.
- Economic Impact Intensifies: As energy costs rise, the expenses associated with building and operating data centers will also increase, likely altering the cost-benefit analysis of AI infrastructure and affecting investment decisions in the AI sector.
- Food Inflation Risks: The dramatic rise in fertilizer costs could lead to increased food prices, tightening consumer budgets and exacerbating the risk of a recession in the U.S., which may further impact the sustainability of AI investments.
- Investment Confidence Shaken: With estimates suggesting that AI investments could reach $700 billion by 2026, economic downturns may delay or cancel large capital investment projects, thereby affecting the long-term growth potential of the AI industry.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.240
Low
200.00
Averages
264.97
High
352.00
Current: 171.240
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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