Nvidia stock rises to lead chip gains after Meta, Microsoft back AI investment plans

NVIDIA stock surged 2.5% on Thursday, leading a rally in chipmakers after Big Tech leaders Meta and Microsoft reaffirmed their aggressive AI investment strategies. Fellow AI chipmaker Broadcom (AVGO) climbed 2.5%, while NVIDIA supplier Micron (MU) gained 1%. Advanced Micro Devices (AMD) briefly rose 2.8% before ending the session in the red.

The rally came as Microsoft reiterated its massive "$80 billion" AI data center investment plan, with over half earmarked for U.S. projects. Microsoft CFO Amy Hood emphasized, “We remain committed to investing against the strong demand signals we see for our services.” Meanwhile, Meta raised its 2025 capital expenditure outlook to between "$64 billion and $72 billion," citing increased infrastructure costs and expanded AI data center capacity. Meta CFO Susan Li noted, “This updated outlook reflects additional data center investments to support our AI efforts.”

These bold moves directly benefit NVIDIA, as both Microsoft and Meta are among its largest customers — contributing a combined $29 billion to the chipmaker’s 2024 revenue, according to DA Davidson estimates.

Despite earlier market jitters about a possible slowdown in AI spending, Big Tech continues to double down. Hyperscalers like Google, Amazon, Microsoft, and Meta are now projected to collectively exceed "$330 billion" in infrastructure investments this year — reaffirming AI’s dominant position in the tech economy and NVIDIA’s pivotal role in powering it.

Source: Finance.yahoo

Voice of Osiz

The latest AI spending surge from Meta and Microsoft makes one thing clear — the AI race is only accelerating. Our experts view the latest AI investment surge from Meta and Microsoft as a clear testament to the unstoppable momentum of AI-driven infrastructure. NVIDIA’s rally isn’t just a market reaction; it’s a validation of AI’s growing dominance in shaping global tech infrastructure. With over $330 billion flowing into AI data centers this year, the industry is decisively investing in the technologies that will power the next digital era.