Nvidia Stock Climbs Amid Renewed AI Spending Commitments from Tech Giants

Shares of Nvidia surged 4.3% in Thursday's early trading session, driving the semiconductor industry as a whole after Microsoft and Meta both revealed intentions to maintain their ambitious AI investment plans.

This rise came after Microsoft and Meta said late on Wednesday that they would be increasing their expenditures on AI infrastructure to scale their data center capacity in an effort to fulfill their artificial intelligence goals.

Broadcom, another AI chipmaker, saw a 2.5% increase in share price. Micron, a supplier to Nvidia that produces cutting-edge memory chips for its GPUs, increased by 1%. Advanced Micro Devices, a competitor of Nvidia, saw a 2.8% increase before reversing course and closing the trading day down.

Meta's 2025 capital investment estimate was revised from $60 billion to $65 billion to a range of $64 billion to $72 billion. The extra funds will be used to improve AI and increase data center capacity. Microsoft, on the other hand, says that slightly more than half of its $80 billion investment would go to projects in the United States, continuing its long-standing pledge to invest in AI-powered data centers.

Microsoft and Meta are two of Nvidia's biggest clients, so their announcements are excellent news for the firm. Microsoft has contributed almost $20 billion of Nvidia's 2024 income, according to DA Davidson, while Meta is expected to provide an additional $9 billion. Due to the cancellation of data center projects earlier in the year, investors have been concerned about a purported slowdown in Microsoft's AI expenditure. The guideline appears to have eased those nerves with the new statement.