Nvidia Stock Rallies as Alphabet $75B AI Investment Sparks Market Optimism
Nvidia Corp (NASDAQ: NVDA) shares surged on Wednesday after Alphabet Inc. (NASDAQ: GOOG, GOOGL) announced aggressive capital expenditure plans for 2025, reinforcing confidence in the AI semiconductor sector. The tech giant’s higher-than-expected spending on AI infrastructure sent ripples across the market, benefiting key chipmakers, including Nvidia and Broadcom Inc. (NASDAQ: AVGO).
Alphabet’s $75 Billion CapEx Fuels AI Boom
Alphabet’s Q4 earnings report, released Tuesday, revealed that the company plans to invest $75 billion in AI and cloud computing infrastructure in 2025—far exceeding Wall Street’s $58 billion expectation. This substantial investment signals continued strong demand for AI accelerators, benefiting major suppliers like Nvidia and Broadcom.
Following the news:
✅ Nvidia shares gained as Alphabet remains a key AI chip buyer
✅ Broadcom stock surged, as it provides AI accelerators to Alphabet
✅ AMD stock dipped, despite posting strong earnings
AMD’s Q4 Earnings: Mixed Market Reaction
While Advanced Micro Devices Inc. (NASDAQ: AMD) beat analyst estimates in its Q4 earnings report, investors reacted cautiously due to weakness in gaming and embedded segments.
📊 AMD Q4 Highlights:
- Revenue: $7.66 billion (beat estimate of $7.53 billion)
- EPS: $1.09 per share (above the $1.08 forecast)
- Data Center Growth: +69% YoY to $3.9 billion
- Gaming Revenue Decline: -59% YoY
- Embedded Segment Drop: -13% YoY
- Q1 2025 Revenue Outlook: $7.1 billion (+30% YoY growth at midpoint)
Despite strong data center revenue, AMD’s stock fell post-earnings as concerns about gaming and embedded segments overshadowed AI-driven growth.
Nvidia Upcoming Earnings: AI Demand Under the Microscope
The broader semiconductor market is now turning its attention to Nvidia’s highly anticipated earnings report later this month. As the leading AI chip supplier, Nvidia’s results will provide crucial insights into:
📈 AI chip demand trends
📈 Competitive landscape vs. AMD & Broadcom
📈 Enterprise AI adoption outlook
With Alphabet’s massive AI investment providing a bullish backdrop, Nvidia’s upcoming earnings could be a key market catalyst. The AI chip race is heating up, and Wall Street is watching closely.
