NVIDIA (NVDA) Stock Sees Boost as Tech Giants Invest in AI Chips

Author's Avatar
4 days ago
Article's Main Image

NVIDIA's (NVDA, Financial) stock experienced a rise in pre-market trading amid investor anticipation of upcoming earnings reports from major tech clients. Analysts suggest that the capital expenditures of these tech giants will be crucial in driving NVIDIA's stock momentum. NVIDIA's share price currently stands at $172.66, having recently made history as the first company to surpass a $4 trillion market capitalization.

The company's stock has been further supported by regained approval for AI chip sales to China. Upcoming earnings from tech giants, starting with Google's parent company Alphabet (GOOGL), are expected to be a key catalyst for NVIDIA's stock. Investors are particularly focused on capital expenditure data from major cloud providers, who are investing heavily in AI data centers powered by NVIDIA chips.

Daniel Morgan, a senior portfolio manager at Synovus Trust, estimates that U.S. cloud giants will spend $330 billion on capital expenditures this year, a 38% increase from last year. This capital expenditure cycle is expected to continue as large tech firms invest in AI infrastructure, boosting demand for semiconductors, software, and services.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.