NVIDIA (NVDA) Stock Jumps 3.5% as Big Tech Ramps Up AI Spending
NVIDIA (NASDAQ: NVDA) shares surged 3.5% on Wednesday, fueled by a massive AI infrastructure spending boost from tech giants like Google (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), and Meta (NASDAQ: META). The announcement of Google’s $75 billion capital expenditure for 2025—far exceeding Wall Street expectations—has reignited optimism in NVIDIA’s AI dominance.
Big Tech Bets Big on AI, Driving NVIDIA’s Growth
Alphabet, Google’s parent company, stunned analysts by unveiling a $75 billion Capex budget for 2025, significantly higher than the anticipated $58 billion. This commitment underscores the aggressive push toward AI-driven innovation, benefiting chipmakers like NVIDIA, which supplies high-performance GPUs for AI workloads.
- Alphabet’s official statement:
“Our results show the power of our differentiated full-stack approach to AI innovation and the continued strength of our core businesses. We are confident about the opportunities ahead, and to accelerate our progress, we expect to invest approximately $75 billion in capital expenditures in 2025.”
Besides Alphabet, Microsoft and Meta have also announced higher AI infrastructure budgets, reinforcing NVIDIA’s pivotal role in the next wave of AI-driven data centers.
NVIDIA’s Blackwell Platform Gains Momentum
Adding to the bullish sentiment, Super Micro Computer, Inc. (NASDAQ: SMCI)—a key AI server maker and NVIDIA partner—officially launched its end-to-end AI data center “Building Block Solutions” powered by NVIDIA’s Blackwell architecture.
Super Micro’s CEO, Charles Liang, emphasized the importance of scalable AI data centers, stating:
“In this transformative moment of AI, where scaling laws are pushing the limits of data center capabilities, our latest NVIDIA Blackwell-powered solutions, developed through close collaboration with NVIDIA, deliver outstanding computational power.”
This development further cements NVIDIA’s Blackwell chips as a cornerstone of next-generation AI infrastructure.
NVIDIA Stock Still Down 9% YTD – Can Earnings Reverse the Trend?
Despite this week’s rally, NVIDIA shares are still down 9% year-to-date, partly due to concerns about AI Capex efficiency raised by China-based AI startup DeepSeek. The firm recently released a competitive AI model using older NVIDIA chips and minimal spending, sparking fears about potential cost-cutting trends in AI infrastructure.
However, with Google, Microsoft, and Meta ramping up AI investments, NVIDIA’s long-term growth outlook remains strong.
Upcoming NVIDIA Earnings Report: February 26th in Focus
Investors are now eagerly awaiting NVIDIA’s Q4 earnings report on February 26th, which could provide key insights into:
- AI chip demand and revenue growth
- Blackwell chip adoption trends
- Competitive pressures from emerging AI players
With big tech doubling down on AI spending, NVIDIA’s earnings report could be a major catalyst for the stock’s next move.
